Evaluation Criteria Versus Firm Characteristics as Determinants of Public R&D Funding

Science and Public Policy, Vol. 7(4), pp. 525–35

24 Pages Posted: 7 Apr 2021

See all articles by Martin Falk

Martin Falk

Independent

Roger Svensson

Research Institute of Industrial Economics (IFN)

Date Written: April 20, 2020

Abstract

This study provides new empirical evidence regarding the relevance of evaluation criteria and firm characteristics for public R&D funding decisions. The database used contains both accepted and rejected R&D project proposals, project evaluation scores and several firm characteristics. The probit estimations show that proposals with high scores on innovative content, spillover and knowledge gain are significantly more likely to be approved and that most firm-level characteristics are not significant, except for firm size. For example, good or very good assessments of innovative content raise the acceptance probability by between 18 and 37 percentage points, respectively. Small firms are more likely to receive a grant.

Keywords: Government R&D-funding, business sector, evaluation criteria, firm characteristics,

JEL Classification: H25, O32, O38

Suggested Citation

Falk, Martin and Svensson, Roger, Evaluation Criteria Versus Firm Characteristics as Determinants of Public R&D Funding (April 20, 2020). Science and Public Policy, Vol. 7(4), pp. 525–35, Available at SSRN: https://ssrn.com/abstract=3820685

Martin Falk

Independent ( email )

Roger Svensson (Contact Author)

Research Institute of Industrial Economics (IFN) ( email )

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