In-Tech Programme Impact Evaluation
2016
2114996
2497 words
,Introduction and Policy Objectives:
Innovations are crucial in economic growth and development in an increasingly technological
world. A macro study on OECD economies reveals that R&D expenditure spurs innovations,
stimulating economic growth and, in turn, fuels back R&D spending (Bülent and Rıfat,
2012). Firm-specific research on European businesses shows that increased R&D efforts lead to
sales growth, particularly in the high-tech industry (García-Manjón and Romero-Merino, 2012).
Research has demonstrated the positive impact of public funding, taxation incentives and
investor protection in prompting innovation, cementing the unparalleled role of government
intervention in the technological race (Alam et al., 2020; Guellec and Van Pottelsberghe De La
Potterie, 2003). Furthermore, collaboration between academics and businesses offers numerous
benefits, including coordinating R&D agendas, stimulating private R&D investment, leveraging
scientific and technological synergies, and accelerating innovation (Guimón, 2013).
In Poland's specific context, the country has experienced massive economic transformations
since it departed from the USSR, which has created more robust economic growth than its
former socialist companions. However, due to its limited innovative activities and capability,
Poland's long-term economic progress largely depends on technological improvements that it
absorbs from overseas developed countries' innovations. With GDP per capita levels ranging
from 50 to 70% in the most developed countries, access to newer generations of technologies
becomes necessary for further growth, and the essential technologies are often patented and
remain highly secretive in developed countries (Gomułka 2016).
Recognising the need to develop its innovations, the Polish government launched the In-Tech
programme to fund innovative projects in research entities and businesses in 2011. The fundings
can be used during the research and implementation phases. In 2012 and 2013, the programme
held two rounds of applications and received 968 proposals. Applications were scored according
to eight criteria on a five-point scale. Scores from three peer reviewers on the same application
are later averaged to obtain their final score, resulting in 32 and 30.5 as cutoffs for the first and
second rounds, respectively, and 159 applications were funded.
The In-tech programme has three main objectives:
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, 1. Increase the company’s R&D funding;
2. Increase the number of developed and implemented technologies in Poland;
3. Strengthen collaboration between the science academia and the business.
This policy brief will analyse the impact of the In-Tech project on these three objectives using
follow-up surveys conducted in 2016.
Data and Study Design:
The dataset used is cross-sectional data on applicant profiles and project processes collected in
2016, generated from a follow-up survey to In-Tech. The survey interviewed applicants scoring
exactly at the funding threshold and those scoring 8 points above and below it, resulting in 695
observations. Among the specified score range, 87.1 % responded. Interviews were conducted
with the project leader and the leading partner regarding the project’s progress, outputs,
collaboration, and commercial activities.
The following variables are selected as outcome variables to measure the impact of the In-Tech
funding concerning the three objectives of the programme:
Objective 1- Impact on project progress and funding:
a. Project Funded (mpublictlyfunded);
b. Project Started (mprojectstarted);
c. Project Completed (mprojectcompleted);
d. Funding Index (z_funding);
The first three are dummy variables, with 1 representing yes and 0 representing no. The
funding index is an index variable ranging from - 1.02 to 0.99.
Objective 2 - Impact on project outcomes:
a. New Product Prototype (C8_k2_Q);
b. New Product (C8_k3_Q);
c. New Processes (C8_k5_Q);
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