Effect of private and public investment in R&D on innovation in Mexico’s biotechnology firms
Journal of Science and Technology Policy Management
ISSN: 2053-4620
Article publication date: 17 August 2021
Issue publication date: 29 November 2022
Abstract
Purpose
In light of the controversy between the theoretical importance of financing biotechnology firms’ research and development (R&D), and the firms’ contradictory and ambivalent empirical results, this paper aims to contribute to the debate by providing empirical evidence from Mexico’s case.
Design/methodology/approach
The authors use the probit model to determine if firms’ achievements in innovations are related to both private and public financing, and if so, to calculate their marginal effect on the firms’ innovation (n = 40 from 53 firms: 75.5% response). The survey was applied in 2015.
Findings
Although a large proportion of the firms innovate and dedicate resources to R&D activities, neither private financing (different from the R&D portion of sales) nor public financing has an impact on innovation activity.
Research limitations/implications
It is necessary to increase the number of studies that corroborate the type of link established between innovations in biotechnology firms and financing. Analyzing the financing/innovation links at various stages of the innovation process would also be relevant.
Originality/value
The research results support the perspective that the theoretical relationship between the financing and achievements of innovation is not conclusive and point to relevant considerations for the public policy agenda of the case study.
Keywords
Acknowledgements
The research received financial support from the Consejo Nacional de Ciencia Tecnología (CONACYT) through the project “Relevamiento de actividades de biotecnología en empresas en México”, project number 257242.
Citation
Oliver-Espinoza, R. and Stezano, F. (2022), "Effect of private and public investment in R&D on innovation in Mexico’s biotechnology firms", Journal of Science and Technology Policy Management, Vol. 13 No. 4, pp. 746-764. https://doi.org/10.1108/JSTPM-10-2020-0156
Publisher
:Emerald Publishing Limited
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