Abstract

This research evaluates the impact of public funding on the probability of performing various innovative activities in Chilean firms during the period of 2007-2014, using binary choice models applied to a pseudo-data panel. The results indicate that public support for innovation has a positive and statistically significant effect on internal and external Research and Development (R&D) and also increases the probability of having a formal R&D department. However, the results are not robust regarding innovation for products, services, processes, logistics, marketing and organizational innovation. On the other hand, collaborative actions were shown to positively impact the realization of all types of innovation and stimulate internal and external R&D. Thus, it is concluded that public support programs could be more successful if they promote cooperation with public and / or private actors.