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The virtue of industry-science collaborations

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  • Czarnitzki, Dirk

    ()
    (KU Leuven)

Abstract

This article analyzes the potential benefits of industry-science collaborations for samples of Flemish and German firms. A firm collaborating with science may benefit from knowledge spillovers and public subsidies as industry-science collaborations are often granted preferred treatment. I shed light on the potential spillover and subsidy effects by estimating treatment effect models using nearest neighbour matching techniques. For both countries, I find positive effects on business R&D. Firms that engage in industry-science collaborations invest more in R&D compared to the counterfactual situation where they would not collaborate with science. Furthermore, within the sample of firms collaborating with science, a subsidy for that collaboration leads, on average, to higher R&D in the involved firms. Thus there is no full crowding-out of subsidies targeted to science-industry collaborations.

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Bibliographic Info

Paper provided by European Investment Bank, Economics Department in its series EIB Papers with number 5/2009.

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Length: 23 pages
Date of creation: 23 Dec 2009
Date of revision:
Handle: RePEc:ris:eibpap:2009_005

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Keywords: R&D; industry-science collaboration; subsidies; treatment effects estimation;

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