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Industrial innovation: Direct evidence from a cluster-oriented policy

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  • Falck, Oliver
  • Heblich, Stephan
  • Kipar, Stefan

Abstract

Can local industrial policies increase local firm competitiveness? Cluster-oriented policies targeted at selected industries have just such a goal and are very popular among politicians, despite the controversy surrounding these policies in academia. Thus, it would appear useful to discover if cluster-oriented policies are effective. This paper evaluates the cluster-oriented policy introduced in Bavaria, Germany, in 1999. The policy’s goal was to foster innovation and regional competitiveness by stimulating cooperation. Using difference-in-difference-in-differences estimates, we find for different innovation measures that the cluster-oriented policy increased the likelihood of becoming an innovator in the target industries by 4.6 to 5.7 percentage points. At the same time, R\&D expenditures decreased by 19.4\% on average for firms in target industries, while access to external know-how, cooperation with public scientific institutes, and the availability of suitable R\&D personnel increased.

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Bibliographic Info

Paper provided by University of Munich, Department of Economics in its series Munich Reprints in Economics with number 20542.

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Date of creation: 2010
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Publication status: Published in Regional Science and Urban Economics 6 40(2010): pp. 574-582
Handle: RePEc:lmu:muenar:20542

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References

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Citations

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Cited by:
  1. Falck, Oliver & Guenther, Christina & Heblich, Stephan & Kerr, William R, 2011. "From Russia with Love: The Impact of Relocated Firms on Incumbent Surv ival," Stirling Economics Discussion Papers 2011-17, University of Stirling, Division of Economics.
  2. 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.
  3. Oliver Falck & Stefan Kipar, 2010. "Die High-Tech-Offensive im Freistaat Bayern," Ifo Schnelldienst, Ifo Institute for Economic Research at the University of Munich, vol. 63(03), pages 21-26, 02.
  4. Uwe Cantner & Holger Graf & Susanne Hinzmann, 2013. "Policy induced innovation networks: the case of the German "Leading-Edge Cluster competition"," Jena Economic Research Papers 2013-008, Friedrich-Schiller-University Jena, Max-Planck-Institute of Economics.
  5. Oliver Falck & Stephan Heblich & Anne Otto, 2013. "Agglomerationsvorteile in der Wissensgesellschaft: Empirische Evidenz für deutsche Gemeinden," Ifo Schnelldienst, Ifo Institute for Economic Research at the University of Munich, vol. 66(03), pages 17-21, 02.
  6. 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.
  7. Helge Dauchert & Dietmar Harhoff & Patrick Llerena & Wolfgang Crasemann & Carla Dekker & Oliver Falck & Simon Wiederhold & Ludger Wößmann, 2013. "Innovationen auf Bestellung? Was von einer stärkeren Nachfrageorientierung in der Innovationspolitik zu halten ist," Ifo Schnelldienst, Ifo Institute for Economic Research at the University of Munich, vol. 66(05), pages 03-19, 03.
  8. David Neumark & Helen Simpson, 2014. "Place-Based Policies," NBER Working Papers 20049, National Bureau of Economic Research, Inc.
  9. Nishimura, Junichi & Okamuro, Hiroyuki, 2012. "Subsidy and networking: The effects of direct and indirect support programs of the cluster policy," Working Paper Series 22, Center for Interfirm Network, Institute of Economic Research, Hitotsubashi University.
  10. 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.
  11. 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.
  12. Oliver Falck & Stefan Kipar & Ludger Wößmann, 2011. "Innovationstätigkeit von Unternehmen : die Rolle von Qualifikationen, Kooperationen und Clusterpolitik," ifo Beiträge zur Wirtschaftsforschung, Ifo Institute for Economic Research at the University of Munich, number 38.
  13. Giorgio Di Pietro & Toni Mora, 2011. "The effect of the l’Aquila earthquake on labour market outcomes," Working Papers 2011/41, Institut d'Economia de Barcelona (IEB).
  14. Bianka Dettmer, 2012. "The European Union's service directive: Contrasting ex ante estimates with empirical evidence," Jena Economic Research Papers 2012-019, Friedrich-Schiller-University Jena, Max-Planck-Institute of Economics.

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