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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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:
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Web page: http://www.library.lu.usi.ch
Biotechnology; R&D Policies; Cluster; Diff-in-Diff Estimation;
Other versions of this item:
- 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.
- 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.
- 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, Production Analysis, and Firm Location - - - Government Policy; Regulatory Policy
- C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Longitudinal Data; Spatial Time Series
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)
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