Open AccessDoes public procurement for innovation increase innovative efforts? The case of Brazil
Author(s) -
Frederico Rocha
Publication year - 2019
Publication title -
revista brasileira de inovação
Language(s) - English
Resource type - Journals
eISSN - 2178-2822
pISSN - 1677-2504
DOI - 10.20396/rbi.v18i1.8653575
Subject(s) - microdata (statistics) , procurement , business , sample (material) , public sector , industrial organization , matching (statistics) , marketing , economics , census , economy , population , chemistry , statistics , demography , mathematics , chromatography , sociology
The paper uses microdata from the Brazilian Innovation Survey to assess the effect of public procurement on firms’ private R&D expenditures. The PINTEC 2014 edition included in its policy module a new question about public procurement related to firms’ innovative activities. The paper uses this information to define a treated sample composed by firms that participated in public procurement with innovative attributes. The paper builds a control sample through coarsened exact matching and tests the effect of innovation-related public procurement on firms’ private R&D to sales ratio. The results suggest a positive impact of public procurement of innovation on R&D intensity. Data also shows that most firms involved in PPI are small and belong to low-technology sectors. These features disclose an important characteristic of the public procurement of innovation: its ability to target small firms and contribute to local development.