Economic crisis and company R&D in Spain: do regional and policy factors matter?

Figures & data

Table 1. Regional characteristics 2008.

Region	GDP (Million euros)	GDP per capita ES = 100	GERD as % of GDP	BERD as % of GERD	BERD as % of GDP	BERD per capita (Euros)	Regional Government R&D budget per capita (Euros)
ANDALUSIA	152,137	77	1.01	34	0.34	64	72
ARAGON	35,615	111	0.99	59	0.58	156	44
ASTURIAS	23,989	92	0.96	44	0.41	93	39
Balearic Islands	27,194	105	0.36	21	0.07	19	16
Canary Islands	42,582	85	0.63	23	0.14	30	153
CANTABRIA	13,279	94	1.06	41	0.41	93	24
CASTILE-LEON	57,092	92	1.30	62	0.80	180	105
CASTILE-LA MANCHA	40,389	82	0.66	56	0.37	73	22
CATALONIA	209,005	117	1.57	61	0.96	274	57
VALENCIAN COMMUNITY	108,508	89	1.03	44	0.45	98	19
EXTREMADURA	18,155	68	0.86	19	0.17	28	72
GALICIA	58,584	87	1.00	48	0.48	102	47
MADRID	202,035	133	1.93	58	1.11	359	20
MURCIA	29,137	84	0.84	39	0.33	67	32
NAVARRE	18,739	125	1.91	69	1.32	401	169
BASQUE COUNTRY	67,698	130	1.99	81	1.61	504	147
LA RIOJA	8,275	108	0.98	58	0.55	144	53

Source: INE and FECYT (see footnote 1).

Table 2. Change in regional R&D variables: 2008–2012.

	ΔGERD	ΔGERD %GDP	ΔBERD	Δ regional R&D budget
SPAIN	−8.91	−2.50	−12.38	−30.2
ANDALUSIA	−3.80	4.54	3.52	−15.8
ARAGON	−11.23	−2.88	−20.37	−30.8
ASTURIAS	−14.71	−4.45	1.65	−49.1
Balearic Islands	−7.66	−2.71	−29.86	−61.2
Canary Islands	−21.33	−16.26	−28.18	−86.2
CANTABRIA	−10.39	−1.78	−20.56	−83.1
CASTILE-LEON	−16.55	−10.92	−16.81	−44.0
CASTILE-LA MANCHA	−13.24	−6.59	−2.99	−30.4
CATALONIA	−8.99	−2.95	−16.66	−41.7
VALENCIAN COMMUNITY	−9.47	1.55	−16.10	36.2
EXTREMADURA	−17.88	−11.45	−14.88	−39.5
GALICIA	−16.50	−9.48	−20.15	−32.3
MADRID	−11.78	−9.55	−15.99	5.4
MURCIA	−6.47	2.47	−7.80	−51.8
NAVARRE	−3.34	3.25	−4.09	−41.0
BASQUE COUNTRY	6.36	12.98	−0.30	−6.2
LA RIOJA	−14.45	−7.51	−22.32	208.4

Source: INE and FECYT (see footnote 1).

Table 3. Firm-specific determinants of the decision to abandon innovation expenditure.

	(1)	(2)	(3)	(4)
				(dy/dx)
SIZE (log)	−0.068** (0.029)	−0.131*** (0.034)	−0.137*** (0.033)	−0.040***
PROD(log)	−0.099 (0.225)	−0.710*** (0.241)	−0.614*** (0.245)	−0.179***
EXPORT	−0.306*** (0.028)	−0.241*** (0.039)	−0.244*** (0.043)	−0.071***
R&D_EMP	−0.007** (0.003)	−0.005* (0.003)	−0.005* (0.003)	−0.001*
PATNUM	−0.027*** (0.011)	−0.019* (0.010)	−0.020** (0.010)	−0.006**
CONTINUE	−0.588*** (0.052)	−0.545*** (0.056)	−0.547*** (0.054)	−0.159***
COOP_UNI	−0.111* (0.066)	−0.098 (0.074)	−0.096 (0.075)	−0.028
COOP_OTHER	−0.130*** (0.039)	−0.165*** (0.044)	−0.155*** (0.043)	−0.045***
FINA_EU	−0.344*** (0.120)	−0.366*** (0.120)	−0.363*** (0.121)	−0.106***
FINA_STATE	−0.186*** (0.045)	−0.126*** (0.048)	−0.123*** (0.061)	−0.036***
FINA_LOCAL	−0.170** (0.083)	−0.160** (0.079)	−0.132** (0.067)	−0.038**
Industry fixed effects	N	Y	Y	Y
Region fixed effects	N	N	Y	Y
Number of observations	4619	4619	4619
Log likelihood	−2478.84	−2395.29	−2379.55
Pseudo R^2	0.103	0.133	0.138

Notes: (1) Robust standard errors in column 1 and 2 and clustered standard errors in column 3 are presented in parentheses; ***, **, * = statistically significant at the 99, 95 and 90% levels. (2) All estimations include a constant. (3) Industry fixed effects are based on 43 unreported sector dummies (4) Firm-specific characteristics also includes 5 type of company dummies.

Table 4. Region specific determinants of firms’ decision to abandon innovation expenditure.

	(1)	(2)	(3)	(4)
				(dy/dx)
Regional dummies
ANDALUSIA	0.326***	0.293***	0.305***	0.089***
ARAGON	0.097***	0.125***	0.132***	0.038***
ASTURIAS	0.406***	0.434***	0.406***	0.118***
Balearic Islands	0.912***	0.724***	0.463***	0.135**
Canary Islands	0.916***	0.902***	0.733***	0.214**
CANTABRIA	0.424***	0.401***	0.366***	0.107**
CASTILE-LEON	0.095***	0.071***	0.090***	0.026***
CASTILE-LA MANCHA	0.276***	0.246***	0.113***	0.033***
CATALONIA	0.183***	0.216***	0.241***	0.070***
VALENCIAN COMMUNITY	0.332***	0.321***	0.313***	0.091***
EXTREMADURA	0.606***	0.482***	0.490***	0.143***
GALICIA	0.317***	0.257***	0.241***	0.070***
MADRID	0.158***	0.153***	0.273***	0.079***
MURCIA	0.402***	0.386***	0.372***	0.108***
NAVARRE	0.389***	0.364***	0.365***	0.106***
BASQUE COUNTRY	–	–	–
LA RIOJA	0.372***	0.369***	0.378***	0.110***
Firm-specific controls	N	N	Y	Y
Industry fixed effects	N	Y	Y	Y
Region fixed effects	Y	Y	Y	Y
Number of observations	4619	4619	4619
Log likelihood	−2733.7	−2623.3	–2379.55
Pseudo R^2	0.010	0.050	0.138

Notes: (1) Clustered standard errors are presented in parentheses; ***, **, * = statistically significant at the 99, 95 and 90% levels. (2) All estimations include a constant. (3) Industry fixed effects are based on 43 unreported sector dummies. (4) Firm-specific controls are given in Table 3. (5) The Basque Country serves as reference region.

Table 5. Region specific determinants of firms’ decision to abandon innovation expenditure: regional characteristics.

	(1)	(2)	(3)	(4)
Regional characteristics
GDP 2008	−0.006*** (0.001)	−0.009*** (0.001)	−0.007*** (0.001)	−0.001*** (0.000)
LQ_BERD 2008		−0.402** (0.208)	−0.133** (0.059)	−0.978*** (0.074)
Δ regional R&D budget: 2008–2012			−0.034*** (0.013)	2.084*** (0.192)
Interaction LQ_BERD 20,008  × Δ regional R&D budget: 2008–2012				−2.006*** (0.181)
Firm-specific controls	Y	Y	Y	Y
Industry fixed effects	Y	Y	Y	Y
Region fixed effects	Y	Y	Y	Y
Joint significance test for regional dummies (P-value)	0.000	0.000	0.000	0.000
Number of observations	4619	4619	4619	4619
Log likelihood	−2379.6	−2379.6	−2379.6	−2379.6
Pseudo R^2	0.138	0.138	0.138	0.138

Notes: (1) Clustered standard errors are presented in parentheses; ***, **, * = statistically significant at the 99, 95 and 90% levels. (2) All estimations include a constant. (3) Industry fixed effects are based on 43 unreported sector dummies. (4) Firm-specific controls are given in Table 3.

Table

Variable	Definition	Mean	SD
SIZE	Log (total number of employees) in 2008	4.16	1.55
PROD	Log (turnover/total number of employees) in 2008	2.47	0.08
EXPORT	Dummy variable taking 1 if the company reports sales in international markets between 2006–2008, and 0 otherwise	0.74	0.44
R&D_EMP	Total number of R&D employees	16.1	41.4
PATNUM	Number of patents applied for between 2006–2008	1.17	15.0
CONTINUE	Dummy variable taking 1 if the company reports having engaged in R&D activities continuously, and 0 if the company reports having engaged in R&D activities sporadically in 2008	0.79	0.41
COOP_UNI	Dummy variable taking 1 if the company reports cooperation with universities, research centres and public research organisations between 2006–2008, and 0 otherwise	0.13	0.33
COOP_OTHER	Dummy variable taking 1 if the company reports cooperation with suppliers, clients, competitors and private research centres between 2006–2008, and 0 otherwise	0.39	0.49
FINA_EU	Dummy variable taking 1 if the company has obtained R&D support from EU programs in 2008 , and 0 otherwise	0.06	0.23
FINA_STATE	Dummy variable taking 1 if the company has obtained R&D support via state grants and contracts in 2008 , and 0 otherwise	0.24	0.43
FINA_LOCAL	Dummy variable taking 1 if the company has obtained R&D support via grants and contracts from regional and local authorities in 2008, and 0 otherwise	0.25	0.43
GDP	Regional Gross Domestic Product in 2008 (in billions)	127.1	74.0
LQ_BERD	Share of regional BERD in regional GERD in 2008 divided by the national share of BERD in total national GERD in 2008	1.05	0.25
Δ regional R&D budget: 2008–2012	(Regional R&D budget 2012 – regional R&D budget 2008)/regional R&D budget 2008	−0.17	0.37

Table

	Size	Prod	Exp.	R&D-emp	Patnum	Cont.	Coop-uni	Coop-other	Fina-Eu	Fina-State	Final-ocal	GDP	LQ-BERD	Δ R&Dbudget
Size	1
Prod	0.275	1
Export	0.180	0.279	1
R&D_emp	0.359	0.054	0.089	1
Patnum	0.068	0.013	0.036	0.139	1
Cont.	0.079	0.008	0.073	0.128	0.035	1
Coop_uni	0.174	0.036	0.067	0.235	0.100	0.128	1
Coop_other	0.118	0.012	0.016	0.185	0.053	0.147	0.411	1
Fina_Eu	0.098	–0.106	0.020	0.316	0.055	0.099	0.343	0.189	1
Fina_State	0.106	–0.078	–0.007	0.245	0.068	0.146	0.227	0.279	0.301	1
Fina_local	–0.033	–0.127	–0.036	0.146	0.020	0.082	0.164	0.273	0.217	0.288	1
GDP	0.071	0.053	0.087	0.057	0.005	0.066	0.012	–0.096	0.014	–0.044	–0.247	1
LQ_BERD	–0.018	0.071	0.039	0.022	0.033	0.022	0.037	0.045	0.023	0.055	0.100	0.001	1
Δ R&D budget	–0.018	–0.033	–0.009	0.027	–0.000	–0.004	0.010	0.033	0.048	0.023	0.057	–0.084	–0.033	1