A decision support approach for financial policy measures selection
Journal of Science and Technology Policy Management
ISSN: 2053-4620
Article publication date: 12 July 2022
Issue publication date: 2 January 2024
Abstract
Purpose
Business research and development (R&D) is of critical importance for innovation and economic growth. The purpose of this study is to present an application of the analytic hierarchy process (AHP) to select the most appropriate policy measure to support the business expenditure on R&D (BERD).
Design/methodology/approach
AHP method adopts a multi-criteria approach that can be used to analyse and prioritize the policy measures based on pairwise comparisons between several attributes that affect the selection of a policy tool. The model formulated in this study is applied to a real case of supporting decision-makers in some high-tech sectors in Iran.
Findings
The results highlight the four main financial policy measures implemented in Iran to enhance the BERD; those are, public procurement for R&D, direct subsidies for R&D, grants for R&D and income tax credit for firms have the priority values of 0.280, 0.260, 0.249 and 0.211, respectively.
Research limitations/implications
The findings of this study are based on subjective evaluation of policy measures by experts of designing policy measures. Objective assessment of policy measures is important too because the preferences of policy interventions change during the time. Another significant point is that the priorities of specific policy measures depend on the effectiveness of their implementing arrangement and the previously successful experience of firms in receiving them.
Originality/value
This paper presents an application of the AHP to select the most appropriate policy measure to support the BERD. This method could be used to prioritize the policies and interventions that governments implement to solve different problems, especially at the innovation system level.
Keywords
Citation
Alizadeh, P. and Amiri, M. (2024), "A decision support approach for financial policy measures selection", Journal of Science and Technology Policy Management, Vol. 15 No. 1, pp. 53-66. https://doi.org/10.1108/JSTPM-09-2021-0142
Publisher
:Emerald Publishing Limited
Copyright © 2022, Emerald Publishing Limited