Innovation capabilities in the private sector: evaluating subsidies for hiring S&T workers in Spain

摘要

This article evaluates the effectiveness of a public programme intended to improve innovation capabilities in the private sector by subsidizing the hiring of research and development (R&D) personnel. Using information from the programme management database, we study factors associated with the duration of contracts and their transformation into open-ended contracts, a basic aim of the programme. We explore the characteristics of subsidies, individuals, entities, and projects related to the eventual stabilization of the new R&D employees, when the subsidies had ended. The programme was found to strengthen R&D capacity in recipient firms-above all in technology centres-yet, only about half of the subsidized short-term contracts had been converted into permanent contracts by the end of their second year.