The public funding of innovation in agri-food businesses

Silverio Alarcón, Pedro Arias

Abstract


Public administrations have in recent years developed programs of public funding for innovation to boost the competitiveness of business. The study of how companies have used these funding sources generates knowledge to improve the design of support for private innovation and to provide advice for innovative companies. This paper investigates these issues in the agri-food sector which is of particular interest as it is comprised mainly of small and medium enterprises with a wide regional presence and interaction with their local environment. A survey on technological innovation was used to estimate panel logit models with random effects, taking as dependent variables three types of funding: regional, state and European Union. The results generally show a positive relationship between innovation efforts and access to public funding, but also significant differences between types of funding and between sectors. Food companies that obtain public funding tend to have a more innovative profile than Agriculture ones. Both types of firm present higher probabilities than others companies when it comes to gaining access to regional funding, though the opposite often occurs in the case of state funding. Firm size is not significant for regional funding and no overlap was detected between regional and state funding. The financial crisis has adversely affected regional and national aid, which experienced a significant decrease in the period from 2008 to 2013.


Keywords


innovation policy; subsidies; random panel logit

Full Text:

PDF

References


Alarcón S, Polonio LG, Sánchez M, 2014. Strategies for the development of new products in the Spanish agri-food industry. In: E-Innovation for sustainable development of rural resources during global economic crisis; Andreopoulou Z, et al. (Eds.) pp: 181-198. IGI Global, Hershey, PA, USA. https://doi.org/10.4018/978-1-4666-4550-9.ch014

Alarcón S, Sánchez M, 2016. Is there a virtuous circle relationship between innovation activities and exports? A comparison of food and agricultural firms. Food Pol 61: 70-79. https://doi.org/10.1016/j.foodpol.2016.02.004

Almus M, Czarnitzki D, 2003. The effects of public R&D subsidies on firms' innovation activities: the case of Eastern Germany. J Bus Econ Stat 21: 226-236. https://doi.org/10.1198/073500103288618918

Alston J, Gray R, 2013. Wheat research funding in Australia: The rise of public-private-producer partnerships. Euroch 12: 30-35 https://doi.org/10.1111/1746-692X.12017

Altuzarra A, 2010. Public funding for innovation at different levels of government: An analysis of Spanish manufacturing. Eur J Econ Fin Adm Sci 20: 94-105.

Arcas N, Martínez I, Cifuentes IO, García J, Montes A, Sabater R., Hernández, 2014. Análisis del sistema de ciencia, tecnología e innovación agroalimentaria en la Región de Murcia Murcia (Analysis of the agri-food science, technologic and innovation system of Murcia Region). Cuad Est Agroal 6: 171-204.

Archibugi D, Pianta M, 1996. Measuring technological change through patents and innovation surveys. Technov 16: 451–468. https://doi.org/10.1016/0166-4972(96)00031-4

Audretsch DB, Menkveld AJ, Thurik AR, 1996. The decision between internal and external R&D. Neuhuys Res Inst, Netherlands.

Bates DM, 2010. lme4: Mixed-effects modeling with R. http://lme4.r-forge.r-project.org/

Baviera-Puig A, Buitrago-Vera J, Mas-Verdú F, 2012. Trade areas and knowledge-intensive services: The case of a technology centre. Man Dec 50: 1412-1424.

Blanes JV, Busom I, 2004. Who participates in R&D subsidy programs?: The case of Spanish manufacturing firms. Res Pol 33: 1459-1476. https://doi.org/10.1016/j.respol.2004.07.006

Busom I, Fernández-Ribas A, 2007. Do R&D programs of different Government levels overlap in the European Union? IEEE Atlanta Conf on Science, Technology and Innovation Policy. https://doi.org/10.1109/ACSTIP.2007.4472895

Cassiman B, Veugelers R, 2006. In search of complementarity in innovation strategy: Internal R&D and external knowledge acquisition. Manage Sci 52: 68-82. https://doi.org/10.1287/mnsc.1050.0470

CNAE, 2009. Clasificación Nacional de Actividades Económicas. https://www.cnae.com.es/

De Jong PJ, Vermeulen PA, 2006. Determinants of product innovations in Small firms. A comparison across industries. Int Small Bus J 24: 587-609. https://doi.org/10.1177/0266242606069268

De Noronha MT, Cesário M, Fernandes S, 2006. Interaction between innovation in small firms and their environments: an exploratory study. Eur Plan Stu 14 (1): 95-117. https://doi.org/10.1080/09654310500339893

FAO, 2015. Public-private partnerships for agribusiness development: A synthesis of international experiences. Food and Agricultural Organization of the United Nations, Rome.

Faraway JJ, 2005. Extending the linear model with R: generalized linear, mixed effects and nonparametric regression models. CRC Press, Boca Raton, FL, USA.

Fernández-Ribas A, 2009. Public support to private innovation in multi-level governance systems: an empirical investigation. Sci Pub Pol 36: 457-467. https://doi.org/10.3152/030234209X460953

Filippaios F, Papanastasiou M, Pearce M, Rama R, 2009. New forms of organization and R&D internationalisation among the world's 100 largest food and beverage multinationals. Res Pol 34: 1032-1043. https://doi.org/10.1016/j.respol.2009.01.024

Fuglie KO, Toole AA, 2014. The evolving institutional structure of public and private agricultural research. Am J Agric Econ 96: 862-883. https://doi.org/10.1093/ajae/aat107

García Álvarez-Coque JM, Lopez-Garcia Usach T, Sanchez Garcia M, 2013. Territory and innovation behaviour in agri-food firms: does rurality matter? New Medit 12: 2-10.

García Álvarez-Coque JM, Mas Verdu F, Sanchez García M, 2015. Determinants of agrifood firms' participation in public funded research and development. Agribus 31 (3): 314-329. https://doi.org/10.1002/agr.21407

García-Quevedo J, Afcha S, 2009. El impacto del apoyo público a la I+D empresarial: Un análisis comparativo entre las subvenciones esta tales y regionales (The impact of public support on business R&D: A comparative analyisis between state and regional subsidies). Inves Reg 15: 277-294.

Ghazalian P, Fakih A, 2017. R&D and Innovation in Food Processing Firms in Transition Countries. J Agric Econ 68: 427-450. https://doi.org/10.1111/1477-9552.12186

Guisado-González M, Guisado-Tato M, Vila-Alonso M, 2013. Using public aid programs to finance innovation in multi-level governance systems. Trans Rev Adm Sci 38: 61-78.

Heijs J, Buesa M, 2016. Manual de economía de innovación. Tomo I: Teoría del cambio tecnológico y sistemas nacionales de innovación (Handbook of innovation economy. Volume I, Theory of technological change and national innovation systems). Instituto de Análisis Industrial y Financiero, Universidad Complutense, Madrid.

Lazzarotti V, Manzini R, Pellegrini L, 2011. Firm-specific factors and the openness degree: A survey of Italian firms. Eur J Inn Man 14: 412-434. https://doi.org/10.1108/14601061111174899

Lokshin B, Belderbos R, Carree M, 2008. The productivity effects of internal and external R&D: Evidence from a dynamic panel data model. Ox Bull Econ Stat 70: 399-413. https://doi.org/10.1111/j.1468-0084.2008.00503.x

MEC, 2012. Estrategia Española de Ciencia y Tecnología y de Innovación 2013-2020 (Spanish Strategy of Science and Technology and Innovation 2013-2020). Ministerio de Economía y Competitividad.

">http://www.idi.mineco.gob.es/stfls/MICINN/Investigacion/FICHEROS/Estrategia_espanola_ciencia_tecnologia_Innovacion.pdf

Moreddu C, 2016. Public-private partnerships for agricultural innovation: Lessons from recent experiences. OECD Food, Agriculture and Fisheries Papers, No. 92. Paris.

Nagelkerke NJ, 1991. A note on a general definition of the coefficient of determination. Biometr 78 (3): 691-692. https://doi.org/10.1093/biomet/78.3.691

Ortega A, Buesa M, Heijs JJ, Baumert T, Álvarez M, 2015. Eficiencia en los sistemas regionales de innovación españoles (Efficiency in the Spanish regional innovation systems). Instituto de Análisis Industrial y Financiero, Universidad Complutense, Madrid.

Pavitt K, 1984. Sectoral pattern of technological change: towards a taxonomy and theory. Res Theor 13: 343-373.

Steele F, 2008. Multilevel models for longitudinal data. J Royal Stat Soc 171: 5-19.

Swets JA, 1988. Measuring the accuracy of diagnostic systems. Sci 240: 1285-1293. https://doi.org/10.1126/science.3287615

Traill WB, Meulenberg M, 2002. Innovation in the food industry. Agribus18: 1-21.

Zouaghi F, Sánchez M, 2016. Has the global financial crisis had different effects on innovation performance in the agri-food sector by comparison to the rest of the economy? Tr Food Sci Tech 50: 230-242. https://doi.org/10.1016/j.tifs.2016.01.014




DOI: 10.5424/sjar/2018164-12657