The impact of public innovation policy on technological and non-technological innovation in Chilean firms [Dataset & code]

Dataset and code accompanying the publication"The impact of public innovation policy on technological and non-technological innovation in Chilean firms". This article evaluates the structural efficacy of Chile's public innovation policy, utilizing data from the tenth National Innovation Survey as a strategic baseline for the country's current support mechanisms. We employ a Bivariate Probit Model to analyze the interdependence between technological and non-technological innovation, addressing endogeneity through a discrete treatment variable for public funding. To establish causal inference in a non-experimental setting, we implement a quasi-experimental design creating counterfactuals via Propensity Score Weighting and Coarsened Exact Matching. This robust approach allows for balancing the sample to accurately estimate the Average Treatment Effect. The results demonstrate that public policy significantly enhances firm-level innovation, increasing the probability of technological innovation by 20%–50% and non-technological innovation by 12%–43%. Crucially, we find that public incentives differ in their impact: they are most effective when firms jointly adopt both innovation types. This complementarity suggests that public policy not only stimulates R&D but also enhances firms' absorptive capacity, facilitating the effective transfer and integration of technology into productive processes.