The Positive Externalities of Financial Assistance to Irish Firms: Methodological Reflections and the Implications for Estimates of Additionality

The purpose of this paper is to assess the extent to which the presence of positive externalities associated with public sector financial assistance to individual firms distorts standard methodologies designed to estimate the level of additionality. These positive externalities may include collaboration and international networking opportunities, information transfer, the freeing up of internal human and financial capital (which can then be utilised in other innovative actions within the firm), or the leverage of additional private sector financial support, including formal and informal venture capital.