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Evaluating the impact of public financial support on innovation activities of European Union enterprises: Additionality approach Cover

Evaluating the impact of public financial support on innovation activities of European Union enterprises: Additionality approach

Open Access
|Sep 2022

Figures & Tables

Figure 1

Theoretical model of the impact of public financial support on different activities of treated enterprise.Source: Own elaboration.
Theoretical model of the impact of public financial support on different activities of treated enterprise.Source: Own elaboration.

Figure 2

Results of path analysis for selected EU countries—input additionality and behavioral additionality.Source: Own elaboration based on the results of path analysis of 14 countries under study. EU, European Union.
Results of path analysis for selected EU countries—input additionality and behavioral additionality.Source: Own elaboration based on the results of path analysis of 14 countries under study. EU, European Union.

Initial sample description

CountrySampleSample split
BG14,25514.4
CY1,3461.4
CZ5,1985.3
DE6,2826.4
EE1,7601.8
EL2,5072.5
ES30,33330.7
HR3,2653.3
HU6,8176.9
LT2,4212.5
LV1,5011.5
NO5,0455.1
PT7,0837.2
RO8,2068.3
SK2,7902.8
Total98,809100.0

Results of path analysis for the whole sample of enterprises from 14 EU member states, total effect, direct effect, and indirect effect

VariablesTotal effectsDirect effectsIndirect effects



PublSuppEUKnowAcqInnoCoopTrPublSuppEUKnowAcqInnoCoopTrPublSuppEUKnowAcqInnoCoopTr
KnowAcq0.4170.0000.0000.4170.0000.0000.0000.0000.000
InnoCoopTr0.2560.3570.0000.1070.3570.0000.1490.0000.000

Variable operationalization

VariableDescription and construction of variablesAbbr. from CIS 2014
PubSuppEUVariable—“Financial support from European Union”
“1” if the firm received public financial support for innovation activity from EU; 0” otherwise.FUNEU
InnoPerfVariable—“Innovation performance of supported enterprise”
Log of fraction (from 0 to 100) of turnover from innovative products introduced in 2012–2014 in total turnover in 2014TURNMA + TURNIN
KnowAcqVariable—“Knowledge acquisition as the proxy for R&D budget”
“1” if the firm declared acquisition of machinery, equipment, software and buildings to be used for new or significantly improved products, processes or acquisition of existing knowledge from other enterprises or organizations (existing know-how, copyrighted works, patented and non-patented inventions, etc. from other enterprises or organizations for the development of new or significantly improved products and processes; “0” otherwiseRMACROEK
InnoCoopTrVariable—“Innovation cooperation and personnel training”
“1” if the firm declared cooperation with local suppliers; customers; competitors; consultants; universities, research institutes, or cooperation with EU suppliers; customers; competitors; consultants; universities, research institutes, or cooperation with non-EU (China, India, the United States, other countries) suppliers; customers; competitors; consultants; universities, research institutes, or conducted internal or external training for its personnel for the development and/or introduction of new products and processes; “0” otherwiseCo11-Co75.RTR

Results of path analysis for the whole sample of enterprises from 14 EU member states

VariableImpact directionVariableHEstimateS.E.PStandardized
KnowAcq<---PublSuppEUH10.4170.015***0.203
InnoPerf<---PublSuppEUH20.0660.012***0.046
InnoCoopTr<---PublSuppEUH30.1070.011***0.063
InnoPerf<---KnowAcq 0.0300.0220.1750.010
InnoPerf<---InnoCoopTr 0.0650.014***0.037
KnowAcq<---InnoCoopTr 0.3570.005***0.430

Taxonomy of EU innovation activity support within surveyed countries results from path models for each country sample and verification of hypotheses

Additionality typeHBGCYCZEEELESHRHULTLVNOPOROSK
Input additionality standardizedH10.1880.1990.1250.0760.0820.0610.1070.1730.1460.0530.0040.1220.0750.058
Input additionality P valueH1*********0.244*************0.5380.866***0.5010.252
Input additionality (external R&D)H1+++No+++++NoNo+NoNo
Output additionality standardizedH20.0190.0450.0130.029−0.0240.041−0.022−0.0150.0520.1730.0330.0120.0560.001
Output additionality P valueH2.4570.4330.5950.6950.522**0.5900.5660.0820.3880.1590.5900.6140.987
Output additionalityH2NoNoNoNoNo+NoNoNoNoNoNoNoNo
Behavioral additionality standardizedH30.1840.1160.2090.0230.2070.2860.1250.1460.1800.1730.2330.2900.1980.195
Behavioral additionality P valueH3***0.038***0.755**************0.058******0.066***
Behavioral additionalityH3+++No+++++No++No+
Policy type B.IDBI.DBI.DNO.AEBI.DMULTBI.DBI.DBI.DNO.AEMONO.DBIDNO.AEMONO.D
DOI: https://doi.org/10.2478/ijme-2022-0020 | Journal eISSN: 2543-5361 | Journal ISSN: 2299-9701
Language: English
Page range: 248 - 266
Submitted on: Dec 30, 2021
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Accepted on: Sep 30, 2022
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Published on: Sep 30, 2022
In partnership with: Paradigm Publishing Services
Publication frequency: 4 issues per year

© 2022 Małgorzata Stefania Lewandowska, Marzenna Anna Weresa, Małgorzata Rószkiewicz, published by Warsaw School of Economics
This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 License.