Evidence-Based Industrial Policy

Policy-makers are increasingly relying on “structural” or “industrial” policies to revive productivity growth and reach their strategic objectives. Subsidies and public procurement play a central role in this context, but there are still important gaps in our understanding of their effects on the economy. First, there is little research to guide targeting of public funding towards particular industries or firms. Second, we lack a broadly accepted theory of how firms select into applying for public funding and thus remain in the dark regarding the possible reallocation effects on aggregate productivity. Third, there is a lack of evidence regarding the ability of structural policies to not just stimulate the quantity of investment but steer its composition (e.g. towards green technologies). Fourth, we still have a limited understanding of how spillovers are transmitted in the economy and which firms or activities generate most spillovers. In this project, we aim to help address these questions with the help of unique datasets on business subsidies, public procurement and supplier-buyer links, novel strategies for causal estimation and machine-learning techniques for text analysis.

Project team of FSV UK (4)

Matěj Bajgar, D.Phil.

Principal Investigator

matej.bajgar@fsv.cuni.cz

doc. PhDr. Martin Gregor, Ph.D.

Team member

+420 222 112 306

martin.gregor@fsv.cuni.cz  |  gregor@fsv.cuni.cz

PhDr. Miroslav Palanský, Ph.D.

Team member

+420 776 661 654

miroslav.palansky@fsv.cuni.cz

prof. Ing. Karel Janda, Dr., Ph.D., M.A.

Team member

+420 222 112 316

karel.janda@fsv.cuni.cz

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