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.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by USI Università della Svizzera italiana in its series Quaderni della facoltà di Scienze economiche dell'Università di Lugano with number 1105.
Length: 36 pages
Date of creation: Feb 2011
Date of revision:
Contact details of provider:
Web page: https://www.bul.sbu.usi.ch
Biotechnology; R&D Policies; Cluster; Diff-in-Diff Estimation;
Other versions of this item:
- D. Engel & T. Mitze & R. Patuelli & J. Reinkowski, 2011. "Does the Support of Innovative Clusters Sustainably Foster R&D Activity? Evidence from the German BioRegio and BioProfile Contests," Working Papers wp744, Dipartimento Scienze Economiche, Universita' di Bologna.
- 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.
- 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.
- 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-2011-02-26 (All new papers)
- NEP-CSE-2011-02-26 (Economics of Strategic Management)
- NEP-INO-2011-02-26 (Innovation)
- NEP-SBM-2011-02-26 (Small Business Management)
- NEP-URE-2011-02-26 (Urban & Real Estate Economics)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Dohse, Dirk, 2000. "Technology policy and the regions -- the case of the BioRegio contest," Research Policy, Elsevier, vol. 29(9), pages 1111-1133, December.
- Anselin, Luc & Varga, Attila & Acs, Zoltan, 1997. "Local Geographic Spillovers between University Research and High Technology Innovations," Journal of Urban Economics, Elsevier, vol. 42(3), pages 422-448, November.
- Martin, Philippe & Mayer, Thierry & Mayneris, Florian, 2011.
"Public support to clusters: A firm level study of French "Local Productive Systems","
Regional Science and Urban Economics,
Elsevier, vol. 41(2), pages 108-123, March.
- MARTIN, Philippe & MAYER, Thierry & MAYNERIS, Florian, . "Public support to clusters. A firm level study of French "Local Productive Systems"," CORE Discussion Papers RP -2287, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- Florian Mayneris & Thierry Mayer & Philippe Martin, 2011. "Public support to clusters. A firm level study of french 'local productive systems'," Sciences Po publications info:hdl:2441/c8dmi8nm4pd, Sciences Po.
- Florian Mayneris & Thierry Mayer & Philippe Martin, 2008. "Public support to clusters : a firm level study of French "local productive systems"," Sciences Po publications 7102, Sciences Po.
- Martin, Philippe & Mayer, Thierry & Mayneris, Florian, 2008. "Public Support to Clusters: A Firm Level Study of French “Local Productive Systems”," CEPR Discussion Papers 7102, C.E.P.R. Discussion Papers.
- Zvi Griliches, 1998.
"Patent Statistics as Economic Indicators: A Survey,"
in: R&D and Productivity: The Econometric Evidence, pages 287-343
National Bureau of Economic Research, Inc.
- Griliches, Zvi, 1990. "Patent Statistics as Economic Indicators: A Survey," Journal of Economic Literature, American Economic Association, vol. 28(4), pages 1661-1707, December.
- Zvi Griliches, 1991. "Patent Statistics as Economic Indicators: A Survey," NBER Working Papers 3301, National Bureau of Economic Research, Inc.
- Vuong, Quang H, 1989. "Likelihood Ratio Tests for Model Selection and Non-nested Hypotheses," Econometrica, Econometric Society, vol. 57(2), pages 307-33, March.
- Dauth, Wolfgang, 2010. "Agglomeration and regional employment growth," IAB Discussion Paper 201007, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
- Dirk Engel & Oliver Heneric, 2005. "Biotechnologie-Gründungen im Ruhrgebiet – Eine vergleichende Analyse," RWI Materialien, Rheinisch-Westfälisches Institut für Wirtschaftsforschung, pages 33, December.
- Patuelli, Roberto & Grimpe, Christoph, 2008.
"Knowledge Production in Nanomaterials: An Application of Spatial Filtering to Regional Systems of Innovation,"
ZEW Discussion Papers
08-064, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
- Christoph Grimpe & Roberto Patuelli, 2011. "Regional knowledge production in nanomaterials: a spatial filtering approach," The Annals of Regional Science, Springer, vol. 46(3), pages 519-541, June.
- Christoph Grimpe & Roberto Patuelli, 2008. "Knowledge Production in Nanomaterials : An Application of Spatial Filtering to Regional Systems of Innovation," Quaderni della facoltÃ di Scienze economiche dell'UniversitÃ di Lugano 0806, USI Università della Svizzera italiana.
- Christoph Grimpe & Roberto Patuelli, 2008. "Regional Knowledge Production in Nanomaterials: A Spatial Filtering Approach," Working Paper Series 29-08, The Rimini Centre for Economic Analysis, revised Apr 2009.
- Falck, Oliver & Heblich, Stephan & Kipar, Stefan, 2010. "Industrial innovation: Direct evidence from a cluster-oriented policy," Regional Science and Urban Economics, Elsevier, vol. 40(6), pages 574-582, November.
- Dirk Fornahl & Tom Broekel & Ron Boschma, 2011.
"What drives patent performance of German biotech firms? The impact of R&D subsidies, knowledge networks and their location,"
Papers in Regional Science,
Wiley Blackwell, vol. 90(2), pages 395-418, 06.
- Dirk Fornahl & Tom Broekel & Ron Boschma, 2010. "What drives patent performance of German biotech firms? The impact of R&D subsidies, knowledge networks and their location," Papers in Evolutionary Economic Geography (PEEG) 1009, Utrecht University, Section of Economic Geography, revised Aug 2010.
- repec:fth:harver:1473 is not listed on IDEAS
- Björn Alecke & Christoph Alsleben & Frank Scharr & Gerhard Untiedt, 2006. "Are there really high-tech clusters? The geographic concentration of German manufacturing industries and its determinants," The Annals of Regional Science, Springer, vol. 40(1), pages 19-42, March.
- Baptista, Rui & Swann, Peter, 1998. "Do firms in clusters innovate more?," Research Policy, Elsevier, vol. 27(5), pages 525-540, September.
- Marshall, Alfred, 1890. "The Principles of Economics," History of Economic Thought Books, McMaster University Archive for the History of Economic Thought, number marshall1890.
- Lynne G. Zucker & Michael R. Darby, 2006. "Movement of Star Scientists and Engineers and High-Tech Firm Entry," NBER Working Papers 12172, National Bureau of Economic Research, Inc.
- Ai, Chunrong & Norton, Edward C., 2003. "Interaction terms in logit and probit models," Economics Letters, Elsevier, vol. 80(1), pages 123-129, July.
- Dirk Czarnitzki & Bernd Ebersberger & Andreas Fier, 2007. "The relationship between R&D collaboration, subsidies and R&D performance: Empirical evidence from Finland and Germany," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 22(7), pages 1347-1366.
- Baptista, Rui, 2000. "Do innovations diffuse faster within geographical clusters?," International Journal of Industrial Organization, Elsevier, vol. 18(3), pages 515-535, April.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Alessio Tutino).
If references are entirely missing, you can add them using this form.