Does Cluster Policy Trigger R&D Activity? Evidence from German Biotech Contests
AbstractThis paper evaluates the R&D enhancing effects of two large public grant schemes for the German biotechnology industry (BioRegio, BioProfile). Both grant schemes are organized in the form of contents for cooperation with the goal to foster the performance of innovative firms by their organization in research clusters. We apply a Difference-in-Differences estimation technique in a generalized linear model framework, which allows us to control for different initial regional conditions in R&D activity of the biotech sector. 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” have positive effects on R&D activity in the short-term. Apart from this direct winner effect, for the non-winning participants no beneficial indirect effect due to a mobilization of local actors during the application phase could be detected. Finally, first attempts in estimating the long-term effects of the contests for cooperation approach on the winner regions’ R&D activity in the post-treatment period show ambiguous results.
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Bibliographic InfoPaper provided by The Rimini Centre for Economic Analysis in its series Working Paper Series with number 15_11.
Date of creation: Feb 2011
Date of revision: Jan 2012
Publication status: Published in European Planning Studies 21 (11): 1735–59
Biotechnology; R&D Policies; Cluster; Difference-in-Differences Estimation;
Other versions of this item:
- Dirk Engel & Timo Mitze & Roberto Patuelli & Janina Reinkowski, 2013. "Does Cluster Policy Trigger R&D Activity? Evidence from German Biotech Contests," European Planning Studies, Taylor & Francis Journals, vol. 21(11), pages 1735-1759, November.
- Dirk Engel & Timo Mitze & Roberto Patuelli & Janina Reinkowski, 2011. "Does the support of innovative clusters sustainably foster R&D activity? Evidence from the German BioRegio and BioProfile contests," Quaderni della facoltÃ di Scienze economiche dell'UniversitÃ di Lugano 1105, USI Università della Svizzera italiana.
- 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, 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
- 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-2011-02-19 (All new papers)
- NEP-CIS-2011-02-19 (Confederation of Independent States)
- NEP-CSE-2011-02-19 (Economics of Strategic Management)
- NEP-INO-2011-02-19 (Innovation)
- NEP-SBM-2011-02-19 (Small Business Management)
- NEP-URE-2011-02-19 (Urban & Real Estate Economics)
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