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.

Characterization of traditional raw materials used in housing construction in Huambo Region - Angola

The sustainability of buildings associated to the use of raw earth has motivated the studies and the development of techniques and methods in the context of this type of construction. In the region of Huambo, Angola, these construction techniques are widely used, especially for low-income families who represent the majority of the population. Much of the buildings in Huambo province are built with adobe. Due to the climate in this region, subtropical, hot and humid, with altitudes above 1000 meters and extensive river system, these buildings are particularly vulnerable to the action of water and develop, in many situations, early degradation. The Huambo Province is located in central Angola, has 36 km2 area and approximately 2 million inhabitants. This work aims to evaluate, by conducting in-situ tests, physical and mechanical properties of adobe blocks typically used in the construction of those buildings. The methodology is based on field campaigns where in-situ expeditious tests were performed in soils (smell test, color, touch, brightness, sedimentation, ball, hardness, etc.) and tests on adobes blocks made with traditional procedures, particularly in terms of durability and erodibility (erosion test at Geelong method; evaluation test of wet / dry cycle, applying the New Zealand standards 4297: 1998; 4297: 1998 and 4297: 1999). The results will contribute to the characterization of the geomaterials and methods used in construction with earth in Huambo Province, contributing to the improvement of these sustainable solutions, with a strong presence in this region. The results of this study will also contribute to the proposal of constructive solutions with improved performance characteristics, comfort, safety and durability.