“Primary school choice in Chile : a structural aproach”

Abstract

This paper studies the effect of participate in a business association on the propensity of developing R&D projects. The empirical aproach using data from surveys of more than 5,000 firms, dealing with the endogeneity of the simultaneous effect between depend and interest variables, and also with the binary nature of both. The results show that the participation in business association has a positive effect on R&D investment, increasing the propensity by 27 percentage points. This effect is larger in small and medium firms and in those who have significant financial restrictions, which is a crucial element for investment in innovation. The robustness of the results allows us to contribute to the debate on the role that business associations can play for the productive and technological development of the firms in the country.