Does Innovation Norway’s grants have an effect? : an empirical research paper examining the effects of the establishing grant and development grants
Year: 2016
Type: dissertation
Abstract: This paper examines the possible effects of government financial support to firms through\nInnovation Norway (IN). We compare firms that received support from IN in the years 2006-\n2010 with comparable firms that applied for support, but were rejected. To manage potential\nendogeneity problems, we assess the effects of IN support by combining propensity score\nmatching with a differences-in-differences estimation. We thereby control for observable firm\ncharacteristics and fixed firm effects. The treatment effects of participation are estimated for\ntwo types of IN grants: Establishing grants and development grants. The treatment effects are\nmeasured as differences in growth between the treated and matched firms the first two and three\nyears after receiving IN support.\nWe find no evidence that establishing grants have positive effects on value creation, number of\nemployees or return on assets. We even find some evidence of negative effects of receiving\nestablishing grants on operating profits and sales revenue. However, the results for sales\nrevenue are not robust, and the results for operating profits are only significant two years after\ntreatment. For development grants, we find significant positive effects on operating profits and\nemployment. On the other hand, we find no clear evidence that development grants have\npositive effects on value creation, sales revenue or return on assets.
Source: BIBSYS Brage (BIBSYS (Norway))
Authors: Aron Berhe, Tobias Martens
Language: English
Topic: Innovation Policy and R&D
Subfield: Economics and Econometrics
Domain: Social Sciences
Open Access status: green
OpenAlex ID: W2592833140