Abstract
The aim of this paper is to analyze the existence of indications of complementarity/substitutability between the innovation agencies operating in Spain (regional, national, European, and Seventh Framework Programme), which will allow us to determine the corresponding asymmetries in the implementation of the so-called subsidiarity principle. The data used in the study come from the Panel de Innovación Tecnológica 2015 and 2016 (Spain). The empirical analysis has been carried out by the so-called adoption approach, having previously corrected the selection biases that may be present in the sample. The results obtained indicate that there are indications of substitution between the two Spanish agencies (regional and national), while other relationships between agencies exhibit indications of complementarity. These indications of complementarity/substitutability show that the implementation of the principle of subsidiarity between the two Spanish agencies seem to work correctly, while this implementation is much more diffuse between the two Spanish agencies and the two European agencies. Therefore, these results reveal that there is an obvious asymmetry in the implementation of the principle of subsidiarity between the different agencies. These findings may be an important guide in the decision making of managers. Knowing which agencies are substitutes and which are complementary is extremely relevant information, since it allows the advance determination of which combinations of agencies should be avoided. It also provides policy makers with relevant information for the design of more efficient innovation promotion policies. Finally, this research uses a new methodology for the evaluation of the interaction that takes place between the different public agencies for the promotion of innovation, thus contributing to policy analysts and academics, who conduct such evaluations, have at their disposal a new tool for analysis.
Highlights
The economic literature indicates that countries with a greater number of innovative companies are those that generally enjoy greater prosperity and wealth
We found that the Spanish National Agency has granted public funds to 770 companies and the set of regional agencies has granted public funds to 512 companies
Most studies on public innovation promotion programs assess the impact of subsidies on companies by taking each source of public funding separately
Summary
The economic literature indicates that countries with a greater number of innovative companies are those that generally enjoy greater prosperity and wealth (companies with high profits and consumers with greater purchasing power). It notes that the productivity and growth of enterprises rely primarily on their respective innovation capabilities [1]. Public policies that seek to increase the technological capacity of the productive fabric in a particular geographic area (region, country, or economic bloc) contribute to the improvement of welfare policy on that site. In almost all advanced countries, the respective public administrations promote innovation activities in enterprises or other institutions, through different grant programs and other forms of intervention [2]. In some cases, the selection process of companies benefiting from these programs can lead to a misallocation of the corresponding public resources. In this context, it is extremely important to analyze the effectiveness/ineffectiveness of such programs
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