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Subsidy and networking: The effects of direct and indirect support programs of the cluster policy

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  • Nishimura, Junichi
  • Okamuro, Hiroyuki

Abstract

Industrial clusters have attracted considerable attention worldwide for their expected contribution to regional innovation. Recently, policymakers in various countries have developed specific cluster policies. However, there exist few empirical studies on cluster policies. Focusing on the Industrial Cluster Project (ICP) in Japan initiated by the Ministry of Economy, Trade and Industry in 2001, we address two research questions on the support programs of the cluster policies: if the project participants who exploit various support programs are more successful in network formation within the cluster than others, and which kind of support program contributes to firm performance. We pay special attention to the differences between direct R&D support and indirect networking/coordination support. The estimation results, which are based on recent original survey data, suggest that cluster participants who exploit support programs (especially indirect support measures) expand the industry-university-government network after participating in the ICP. Moreover, we find that not every support program contributes to firm performance; firms should therefore select the program that is most aligned with their aims. Indirect support programs have an extensive and strong impact on output whereas direct R&D support has only a weak effect.

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Bibliographic Info

Paper provided by Center for Interfirm Network, Institute of Economic Research, Hitotsubashi University in its series Working Paper Series with number 22.

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Length: 34 p.
Date of creation: Dec 2012
Date of revision:
Handle: RePEc:hit:cinwps:22

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Keywords: cluster policy; industrial cluster; R&D support; subsidy; networking;

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Citations

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Cited by:
  1. Okamuro, Hiroyuki & Nishimura, Junichi, 2011. "Management of Cluster Policies: Case Studies of Japanese, German, and French Bio-clusters," CEI Working Paper Series 2011-7, Center for Economic Institutions, Institute of Economic Research, Hitotsubashi University.
  2. Hiroyuki Okamuro & Junichi Nishimura, 2011. "Impact of University Intellectual Property Policy on the Performance of University-Industry Research Collaboration," Global COE Hi-Stat Discussion Paper Series gd11-189, Institute of Economic Research, Hitotsubashi University.
  3. Junichi Nishimura & Hiroyuki Okamuro, 2011. "R&D productivity and the organization of cluster policy: an empirical evaluation of the Industrial Cluster Project in Japan," The Journal of Technology Transfer, Springer, vol. 36(2), pages 117-144, April.
  4. repec:idb:brikps:53978 is not listed on IDEAS
  5. Thomas Brenner & Carsten Emmrich & Charlotte Schlump, 2013. "Regional Effects of a Cluster-oriented policy measure. The Case of the InnoRegio program in Germany," Working Papers on Innovation and Space 2013-05, Philipps University Marburg, Department of Geography.
  6. Huber, Franz, 2013. "Knowledge-sourcing of R&D workers in different job positions: Contextualising external personal knowledge networks," Research Policy, Elsevier, vol. 42(1), pages 167-179.
  7. Olivier Brossard & Inès Moussa, 2014. "The French cluster policy put to the test with differences-in-differences estimates," Economics Bulletin, AccessEcon, vol. 34(1), pages 520-529.
  8. Min-Ren Yan & Kuo-Ming Chien, 2013. "Evaluating the Economic Performance of High-Technology Industry and Energy Efficiency: A Case Study of Science Parks in Taiwan," Energies, MDPI, Open Access Journal, vol. 6(2), pages 973-987, February.
  9. Nobuya Fukugawa, 2013. "University spillovers into small technology-based firms: channel, mechanism, and geography," The Journal of Technology Transfer, Springer, vol. 38(4), pages 415-431, August.

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