The Selection Process of Applications to the Portuguese Innovation Incentive System: Who Gets Financial Support?

Public policies to support entrepreneurship and innovation play a vital role when firms have difficulties in accessing external finance. However, some authors have found evidence of long-term inefficiency in subsidized firms (Bernini and Pelligrini, 2011; Cerqua and Pelligrini, 2014) and ineffectiveness of public funds (Jorge and Suárez, 2011). The aim of the paper is to assess the effectiveness in the selection process of applications to public financial support for stimulating innovation. Using a binary choice model, we investigate which factors influence the probability of obtaining public support for an innovative investment. The explanatory variables are connected to firm profile, the characteristics of the project and the macroeconomic environment. The analysis is based on the case study of the Portuguese Innovation.Incentive System (PIIS) and on the applications managed by the Alentejo Regional Operational Program in the period 2007 – 2013. The results show that the selection process is more focused on the expected impact of the project than on the firm’s past performance. Factors that influence the credit risk and the decision to grant a bank loan do not seem to influence the government evaluator regarding the funding of some projects. Past activities in R&D do not significantly affect the probability of having an application approved under the PIIS, whereas an increase in the number of patents and the number of skilled jobs are both relevant factors. Nevertheless, some evidence of firms’ short-term inefficiency was found, in that receiving public financial support is linked to a smaller increase in productivity compared to non-approved firm applications. At the macroeconomic level, periods with a higher cost of capital in financial markets are linked to a greater probability of getting an application for public support approved, which could be associated with the effectiveness of public support in correcting market failings.

STUDENT’ S ENGAGEMENT IN SCHOOL: A LITERATURE REVIEW

Students’ Engagement in School has been the focus of debate concerning academic success and school dropout, and pointed out as a mean to address the problems affecting our schools and their students, not only for having value in itself, but also for being an important mediator between several academic variables. This paper reviews the research and literature on this concept and its relations with personal and contextual variables, as well as with academic performance, with the aim of summarizing the main relationships found. Literature presents a significant number of studies which sustain that personal variables, such as self-efficacy and self-concept, as well as contextual - peers, school, family- are related with school engagement. The adoption of mastery goals, for instance, has a positive impact on school, as they are related with the use of cognitive and self-regulatory strategies by students. Positive relationships with peers, teachers support and the quality of family relations are associated with higher levels of engagement and academic performance, while negative experiences, such as bullying, are related with educational difficulties. Following this, we reflect about the relevance of studying engagement in school, in the context of widespread financial crisis, and emphasize the need to rethink educational institutions considering the paradigmatic changes that currently occur.