Working Papers

Productive Development Policies and Innovation Spillovers through Labor Force Mobility: The Case of the Brazilian Innovation Support System

PUBLISHED: November 2013
RELATED TOPICS: Microeconomics


This paper focuses on two research problems. The first is to measure the direct impacts of innovation support measures in Brazil, and the second is to test the hypothesis of indirect effects of innovation policies on non-beneficiary firms through the labor mobility channel, whether resulting from direct support programs or indirect support via tax incentives. For this purpose, mobility is defined as the movement of workers in technical-scientific occupations, as identified by Araújo et al. (2009). It is found that, with the exception of a subvention program, direct support in the form of credit or cooperative projects fosters more innovative effort than tax incentives. Nonetheless, direct and tax-based incentives for innovation have different purposes, and sound innovation relies on both types of incentive.

Related Research by JEL Codes:
(or click here to find research by JEL Codes)
  • The Impact of ICT Cluster Support in the Argentine City of Córdoba
    Working Papers
    IDB-WP-460 - March 2014

    This paper estimates the direct and indirect effects of support received between 2003 and 2007 by information and communications technology (ICT) producers in the city of Córdoba under the Supply Chain Development in the Province of Córdoba Program. Two complementary approaches were considered for estimating indirect effects: externalities associated with job mobility and externalities associated ... (View publication)

  • Firm Size and Credit in Argentina
    Working Papers
    IDB-WP-396 - March 2013

    The goal of this paper is to study the link between bank credit (and internal funding) and average firm size in Argentina. Besides the fact that economic growth tends to go hand in hand with larger firm size, the topic is of particular interest because of the severe credit crunch in Argentina in the aftermath of the 2001-2002 financial crisis. To this end, a novel three-digit industry-level datase ... (View publication)

  • Innovation, R and D Investment and Productivity in Chile
    Working Papers
    IDB-WP-190 - October 2010

    This paper uses two sources of information and different methodologies to analyze the causal effect of product and process innovation on productivity in the Chilean manufacturing industry during the past decade. In general, the evidence suggests there is not a contemporaneous effect of product innovation on productivity, but there is a positive effect of process innovation. This not significant ef ... (View publication)

Hello, Welcome to the IDB!

Please join our mailing list by simply entering your email below.