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Local R&D support as a driver of network diversification? A comparative evaluation of innovation policies in neighboring prefectures in Japan

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  • Takano, Keisuke
  • Okamuro, Hiroyuki

Abstract

This paper compares the effects of local R&D support programs on firm performance between neighboring three prefectures in the same district in Japan. Particularly, we evaluate the policy effect on regional and sectoral diversification of transaction networks. One of these prefectures, A, has a large industrial agglomeration around world-leading manufacturers, which is not the case for the other prefectures, B and C. Empirical evaluation based on firm-level dataset available through TDB-CAREE shows that the programs in Prefectures B and C promoted market development of recipient firms in unexplored sectors or regions, whereas Prefecture A’s program did not.

Suggested Citation

  • Takano, Keisuke & Okamuro, Hiroyuki, 2019. "Local R&D support as a driver of network diversification? A comparative evaluation of innovation policies in neighboring prefectures in Japan," TDB-CAREE Discussion Paper Series E-2019-02, Teikoku Databank Center for Advanced Empirical Research on Enterprise and Economy, Graduate School of Economics, Hitotsubashi University.
    • Handle: RePEc:hit:tdbcdp:e-2019-02
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    File URL: https://hermes-ir.lib.hit-u.ac.jp/hermes/ir/re/30818/070careeDP-E-1902.pdf
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    More about this item

    Keywords

    place-based policy; R&D support; interregional trade; diversification;
    All these keywords.

    JEL classification:

    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
    • L52 - Industrial Organization - - Regulation and Industrial Policy - - - Industrial Policy; Sectoral Planning Methods
    • O38 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Government Policy
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
    • R58 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Regional Development Planning and Policy

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