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Innovation on demand--Can public procurement drive market success of innovations?

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  • Aschhoff, Birgit
  • Sofka, Wolfgang

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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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

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

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References

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Citations

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Cited by:
  1. Simon Wiederhold, 2012. "The Role of Public Procurement in Innovation: Theory and Empirical Evidence," ifo Beiträge zur Wirtschaftsforschung, Ifo Institute for Economic Research at the University of Munich, number 43, 8.
  2. Oliver Falck & Simon Wiederhold, 2013. "Nachfrageorientierte Innovationspolitik: Bestandsaufnahme und ökonomische Bewertung," ifo Beiträge zur Wirtschaftsforschung, Ifo Institute for Economic Research at the University of Munich, number 51, 8.
  3. Peeters, T.J.G., 2013. "External knowledge search and use in new product development," Open Access publications from Tilburg University urn:nbn:nl:ui:12-5906731, Tilburg University.
  4. 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.
  5. 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.
  6. Guerzoni, Marco & Raiteri, Emilio, 2012. "Innovative public procurement and R&D Subsidies: hidden treatment and new empirical evidence on the technology policy mix in a quasi-experimental setting," Department of Economics and Statistics Cognetti de Martiis LEI & BRICK - Laboratory of Economics of Innovation "Franco Momigliano", Bureau of Research in Innovation, Complexity and Knowledge, Collegio 201218, University of Turin.
  7. Djellal, Faridah & Gallouj, Faïz & Miles, Ian, 2013. "Two decades of research on innovation in services: Which place for public services?," Structural Change and Economic Dynamics, Elsevier, vol. 27(C), pages 98-117.
  8. 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.
  9. 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.
  10. Paraskevopoulou, Evita, 2012. "Non-technological regulatory effects: Implications for innovation and innovation policy," Research Policy, Elsevier, vol. 41(6), pages 1058-1071.

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