Does the Support of Innovative Clusters Sustainably Foster R&D Activity? Evidence from the German BioRegio and BioProfile Contests
AbstractIn this paper, we evaluate the R&D enhancing effects of two large public grant schemes aiming at encouraging the performance of firms organized in clusters. These are Germany's well known BioRegio and BioProfile contests for which we compare the research performance of winning regions in contrast with non-winning and non-participating comparison regions. We apply Difference-in-Difference estimation techniques in a generalized linear model framework, which allows to control for different initial regional conditions in the biotechnology related R&D activity. Our econometric findings support the view that winners generally outperform non-winning participants during the treatment period, thus indicating that exclusive funding as well as the stimulating effect of being a “winner" seems to work in the short-term. In contrast, no indirect impacts stemming from a potential mobilizing effect of the contest approaches have been detected. Also, we find only limited evidence for long-term effects of public R&D grants in the post-treatment period. The results of our analysis remain stable if we additionally augment the model to account for the particular role of spatial dependence in the R&D outcome variables.
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Date of creation: Mar 2011
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- Dirk Engel & Timo Mitze & Roberto Patuelli & Janina Reinkowski, 2012. "Does Cluster Policy Trigger R&D Activity? – Evidence from German Biotech Contests," Ruhr Economic Papers 0311, Rheinisch-Westfälisches Institut für Wirtschaftsforschung, Ruhr-Universität Bochum, Universität Dortmund, Universität Duisburg-Essen.
- Dirk Engel & Timo Mitze & Roberto Patuelli & Janina Reinkowski, 2011. "Does the support of innovative clusters sustainably foster R&D activity? Evidence from the German BioRegio and BioProfile contests," Quaderni della facoltÃ di Scienze economiche dell'UniversitÃ di Lugano 1105, USI Università della Svizzera italiana.
- Dirk Engel & Timo Mitze & Roberto Patuelli & Janina Reinkowski, 2011. "Does Cluster Policy Trigger R&D Activity? Evidence from German Biotech Contests," Working Paper Series 15_11, The Rimini Centre for Economic Analysis, revised Jan 2012.
- O38 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - Government Policy
- R38 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Government Policy
- C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
This paper has been announced in the following NEP Reports:
- NEP-ALL-2011-04-02 (All new papers)
- NEP-CSE-2011-04-02 (Economics of Strategic Management)
- NEP-EUR-2011-04-02 (Microeconomic European Issues)
- NEP-GEO-2011-04-02 (Economic Geography)
- NEP-INO-2011-04-02 (Innovation)
- NEP-IPR-2011-04-02 (Intellectual Property Rights)
- NEP-URE-2011-04-02 (Urban & Real Estate Economics)
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