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From page 249... ...
The empirical specifications of the post-first-application outcomes π for each firm π are all of the form: π πΌ πΉπ’ππππ π½ π π π , 1 where πΉπ’ππππ is an indicator variable that equals 1 if the firm's first application is funded, π½ is the parameter of interest that is intended to capture the causal effect of first-application funding, πΏπ is a vector of control variables that enter the model via some function π, and π is an idiosyncratic error term. At a minimum, all of the specifications will include in πΏπ an indicator for whether a firm's first application was at least discussed (as motivated by the differences shown in Figures 5-4 through 5-8)
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From page 250... ...
coefficient in the most saturated models. Since there is no clear source of exogenous variation in funding, the results shown in Table C-1 are inconclusive in terms of determining how much of the results documented in Table 5-3 are due to selection by the National Institutes of Health SBIR/STTR program (i.e., funding higher-quality firms)
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From page 251... ...
APPENDIX C 251 effects of the program (i.e., providing funds that lead to outcomes that would not have occurred in the absence of those funds)
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