The Multi-Dimensional Additionality of Innovation Policies. A Multi-Level Application to Italy and Spain.

Abstract

The paper proposes and applies an original multi-dimensional evaluation of the additionality of innovation policy, which takes into account its multi-level nature. The input, output and behavioural additionality effects of innovation policies (multi-dimension) are jointly investigated, at the national and regional level (multi-level). An empirical application is carried out for Italy and Spain. A propensity score matching estimation of the average treatment effect on the treated (ATT) is carried out, by using the 4th Community Innovation Survey (CIS). The two multi-level systems of policies appear quite different, both in the extent to which their additionality affects the different dimensions, and to which it does it at the two levels of government.Regional policies miss input additionality in both countries, while they show output additionality in Spain only, where they are also able to spur innovative behaviours by the treated firms. National policies show output additionality in both countries, but in terms of different variables in Spain (product innovations) and in Italy (process innovations). Overall, only national policies show full multi-dimensionality in their additionality. Behavioural additionality has an opposite cross-level nature in the two countries: full additionality in Spain, but full crowding-out in Italy.