Technological Impact of R&D Grants on Utility Models

This article measures the impact of public grants, on the technological output of Spanish manufacturing companies, measured by their count of utility models. The paper estimates two models: one for national grants and the other for regional ones, since origin of funds is considered to create a difference in terms of type of scientific production expected. The models include a moderating role of resources and capabilities of firms, which are considered to play a decisive role on the technological output that firms may achieve. Our results suggest that the firm´s capability to maintain an updated knowledge base influences positively on the relationship of R&D grants and utility models. We also found that other capabilities, such as the firm capacity to planning innovation, the technological cooperation with partners, and the absorptive capacity, have a direct effect on utility models, regardless of the firm's funding scenario. Our results highlight the relevance of possessing R&D capabilities to exploit the funds received