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Abstract

Public procurement has been at the centre of recent discussions on innovation policy. We embed it into the broader framework of public policies to stimulate innovation: regulations, R&D subsidies and basic research at universities. We synthesize the characteristics of all four instruments conceptionally and quantitatively compare their effects on innovation success for 1100 firms in Germany. We find that public procurement and knowledge spillovers from universities propel innovation success equally. The benefits of university knowledge apply uniformly to all firms. However, public procurement is especially effective for smaller firms in regions under economic stress and in distributive or technological services.

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File URL: http://www.sciencedirect.com/science/article/B6V77-4WWFN2K-1/2/84b71fb654966fe5c96b82a9cc431de6
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Bibliographic Info

Article provided by Elsevier in its journal Research Policy.

Volume (Year): 38 (2009)
Issue (Month): 8 (October)
Pages: 1235-1247

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Handle: RePEc:eee:respol:v:38:y:2009:i:8:p:1235-1247

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Web page: http://www.elsevier.com/locate/respol

Related research

Keywords: Innovation policy Public procurement Comparison of instruments Innovation success;

Other versions of this item:

Find related papers by JEL classification:

• C34 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Truncated and Censored Models; Switching Regression Models
• H32 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - Firm
• O38 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - Government Policy

References

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Cited by:

1. Viktor Slavtchev & Simon Wiederhold, 2012. "Technological Intensity of Government Demand and Innovation," Ifo Working Paper Series Ifo Working Paper No. 135, Ifo Institute for Economic Research at the University of Munich.
2. Simon Wiederhold, 2009. "Government Spending Composition in a Simple Model of Schumpeterian Growth," Jena Economic Research Papers 2009-101, Friedrich-Schiller-University Jena, Max-Planck-Institute of Economics.
3. Kirkpatrick, Colin & Raihan, Selim & Bleser, Adam & Prud'homme, Dan & Mayrand, Karel & Morin, Jean Frederic & Pollitt, Hector & Hinojosa, Leonith & Williams, Michael, 2011. "Trade sustainability impact assessment (SIA) on the comprehensive economic and trade agreement (CETA) between the EU and Canada: Final report," MPRA Paper 28812, University Library of Munich, Germany.
4. Viktor Slavtchev & Simon Wiederhold, 2011. "The Impact of Government Procurement Composition on Private R&D Activities," Jena Economic Research Papers 2011-036, Friedrich-Schiller-University Jena, Max-Planck-Institute of Economics.

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