Resumen:
his paper uses administrative data from projects for which an application wasmade to CORFO?s (Chile?s main development agency) Seed Capital Program(SCP) during the 2008-12 period. This paper analyzes the likely impact of theprogram-which is a subsidy provided to new, innovative firms-on Start, Growth,and Survival. The projects are supported by sponsors in the application process.Results of our analysis indicate that, controlling for observed characteristics,projects that received the subsidy had a 9.5 percentage point higher probabilityof starting to sell. Among created firms, subsidized (Treated) firms showed a17 percentage point higher probability of significant Growth (in sales) and asimilar effect on Survival. The analysis also examined a change in the programrules in 2011, whereby sponsors were paid based on performance instead offixed fees, as it was before 2011. For projects affected by the policy change,results indicate no overall association of the program with the probabilit