In this study we analyse the impact of the subventions granted by the Spanish government to innovation activities on the R&D intensity of firms. Our analysis attempts to deal with two of the methodological problems encountered when evaluating policy impact: the non-estimation of a“counter-factual” state (what would have happened without the public support) and the problem stemming from the aid distribution process. The distribution of support is non-random and could create problems when evaluating the innovation policies. The analysis concludes that firms with a defined capacity to guarantee the successful outcome of projects have higher chances of obtaining subsidies. On the other hand, firms with a necessity to finance innovation have lower probabilities of obtaining aid. With regard to the additionality effect, this study found that the subsidies increased the firms’ R&D intensity.

Key words: innovation policy evaluation, R&D, R&D subsidies, additionality.
JEL classification: O3, 031, 038.