Author(s): Bruce Lezana, Freddy C. Coronado, Christian A. Cancino, Juan C. Salazar, Jorge Jarpa-Vrandecic
Many countries promote business development through their Economic Development Agencies (EDAs). These EDAs encounter numerous agency problems when selecting projects in their programs. Knowing how to distinguish between projects with and without real growth opportunities is the key. The objective of this study is to analyze the characteristics of projects with high growth potential in Chile. A sample of 317 firms supported by CORFO between 2012 and 2017 was analyzed. A first logistic regression model evaluates the probability of a firm surviving. A second model evaluates the probability of sustained growth. The results show that growing firms' are larger, with patent ownership and in international trade. Likewise, firms that raise private capital would be more likely to produce better results. This work aims to contribute to the definition of public production support programs.