Tallinn University of Technology

You are welcome to the Department of Economics and Finance research seminar  ''How the EU Cohesion Policy Targeted at R&D and Innovation Impacts the Productivity, Employment and Exports of SMEs in Estonia''. The seminar will take place on 24 November, at 16:00 - 17:00 in room SOC-413 and on MS Teams (link).

Presenter: Helery Tasane (Department of Economics and Finance, Taltech).

Abstract: The aim of this empirical investigation is to assess how the support targeted at R&D and innovation in the European Union Cohesion Policy Programme 2014-2020 affects the labour productivity, employment and exports of small and medium-sized companies. We estimate the treatment effects of two R&D financial support activities using a semiparametric efficient estimator with over-identified moment conditions and inverse probability weighting. The impact assessment uses population data on small and medium-sized enterprises in Estonia, the European Union member state that benefits most per capita from Cohesion Fund allocations. We found that support for R&D and innovation from the Cohesion Policy had a positive short-term effect on labour productivity and employment over the estimation period 2014-2018, and that the size and robustness of the effect were strongest for labour productivity. The short-term effect on exporting was ambiguous.

Keywords: Cohesion Policy evaluation, R&D, innovation, small and medium-sized enterprises, productivity, employment and job creation, exporting, Estonia

JEL classification: C54, J21, J24, L26, O38, R11, R58

Simona Ferraro Department of Economics and Finance, Taltech
Kadri Männasoo Department of Economics and Finance, Taltech
Helery Tasane Department of Economics and Finance, Taltech

The public research seminars of the Department of Economics and Finance (DEF) at Tallinn University of Technology  usually take place on the second and fourth Wednesdays of the month in both onsite and online format, unless announced otherwise. The presentation will last approximately 45 minutes followed by 15 minutes of discussion. The seminars are held in English. Copies of the paper are usually made available at the seminar. The DEF seminar series is organised in collaboration with the project ”Individual Behaviour and Economic  Performance: Methodological  Challenges and Institutional Context” (IBEP), which has received funding from the European Union’s Horizon 2020 Research and Innovation programme under Grant Agreement No 952574. Questions about the seminar can be sent to the IBEP seminar coordinator Kadri Männasoo, kadri.mannasoo@taltech.ee.

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