We analyze Spain’s National Pharmaceutical Research Program using detailed firm-l vel data. We fin differences between
ex ante announced evaluation criteria and ex post implementation. This suggests that judging R&D programs on their design,
rather than their implementation, may be misleading. We also uncover that the apparent discrimination against non-European
firm can be interpreted as a premium to having local production facilities. Overall, the program values firm on the basis of
criteria, such as R&D investment and patent spending, consistent with empirically tested measures of innovative activity.Publicad
