An impact evaluation of a fund to finance innovation in SMEs

Ricardo Monge-González, Juan Antonio Rodríguez-Alvarez, Juan Carlos Leiva

Research output: Contribution to journalArticlepeer-review

3 Scopus citations

Abstract

PurposeThe purpose of this paper is to estimate the impact of one productive development program (PROPYME) in a developing nation like Costa Rica. This program seeks to increase the capacity of small and medium-sized firms (SMEs) to innovate. Design/methodology/approachImpacts have been estimated assuming that beneficiary firms are trying to maximize their profits and that PROPYME aims to increase these firms productivity. The impacts were measured in terms of three result variables real average wages employment demand and the probability of exporting. A combination of fixed effects and propensity score matching techniques was used in estimations to correct for any selection bias. The authors worked with panel data companies treated and untreated for the period 2001-2011. FindingsPROPYME’s beneficiaries performed better than other firms in terms of labor demand and their probability of exporting. In addition, the dose and the duration of the effects of the treatment (timing effects) are important. Originality/valueThe authors study the impact in ways that go beyond the average treatment effects on the treated (ATT) usually estimated in the existing literature. Specifically, the research focusses on the identification of the timing or dynamic effects (i.e. how long should we wait to see results?) and treatment intensity (dosage effects).

Translated title of the contributionEvaluación de impacto de un fondo de financiamiento para la innovación en pymes
Original languageEnglish
Pages (from-to)20-43
Number of pages24
JournalAcademia Revista Latinoamericana de Administracion
Volume29
Issue number1
DOIs
StatePublished - 2016

Keywords

  • Costa Rica
  • Financing
  • Impact evaluation
  • Innovation
  • Labour demand
  • Probability of exporting
  • R&D
  • SMEs

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