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Contests for Cooperation: A New Approach in German Innovation Policy

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  • Eickelpasch, Alexander
  • Fritsch, Michael

Abstract

A new approach in German innovation policy organizes contests of proposals for developing innovation networks. Based on an overview of the different programs, we investigate the advantages, problems and limitations of such an approach. We find that this type of policy may have a relatively large impact and can, therefore, be regarded as a rather efficient instrument of innovation policy. Compared to conventional policies, administration of the program is a much more critical issue. The contest approach may stimulate learning effects on the side of the administration but may also require a high degree of flexibility. The main disadvantage is the additional time that is required for conducting the contest. As a distinct "picking the winner" approach, the contest approach is not suited as a means for achieving a leveling-out of regional welfare levels. -- In einem neuen Ansatz der deutschen Innovationspolitik werden Wettbewerbe für Vorschläge zur Entwicklung von Innovationsnetzwerken organisiert. Ausgehend von einem Überblick über diese Programme diskutieren wir Vorteile, Nachteile und Grenzen dieses Ansatzes. Es zeigt sich, dass diese Art der Innovationsförderung große Wirkungen erzeugen kann und daher vermutlich effizienter ist, als andere Typen von Programmen. Im Vergleich zu konventionellen Formen der Innovationsförderung ist allerdings die Administration des Programms sehr viel anspruchsvoller. Der Wettbewerbs-Ansatz kann Lerneffekte der Administration stimulieren aber auch ein relativ hohes Maß an Flexibilität erfordern. Der wesentliche Nachteil ist die zusätzliche Zeit, die für die Durchführung des Wettbewerbs benötigt wird. Da ein Wettbewerb ein ausgesprochenes ?Pick the Winner?-Vefahren darstellt, ist dieser Ansatz für eine ausgleichsorientierte Regionalpolitik kaum geeignet.

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Bibliographic Info

Paper provided by TU Bergakademie Freiberg, Faculty of Economics and Business Administration in its series Freiberg Working Papers with number 2005,03.

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Date of creation: 2005
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Handle: RePEc:zbw:tufwps:200503

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Keywords: Innovationspolitik; Wettbewerb zwischen Regionen; Innovationsnetzwerke; Innovation policy; regional competition; innovation networks;

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References

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  1. Franz Tödtling & Michaela Trippl, 2004. "One size fits all? Towards a differentiated policy approach with respect to regional innovation systems," SRE-Disc sre-disc-2004_01, Institute for the Environment and Regional Development, Department of Socioeconomics, Vienna University of Economics and Business.
  2. Rachel E. Kranton & Deborah F. Minehart, 2001. "A Theory of Buyer-Seller Networks," American Economic Review, American Economic Association, vol. 91(3), pages 485-508, June.
  3. Fritsch, Michael, 2003. "Do regional systems of innovation matter?," Freiberg Working Papers 2003,03, TU Bergakademie Freiberg, Faculty of Economics and Business Administration.
  4. Dohse, Dirk, 2000. "Technology policy and the regions -- the case of the BioRegio contest," Research Policy, Elsevier, vol. 29(9), pages 1111-1133, December.
  5. Viktor Vanberg & Wolfgang Kerber, 1994. "Institutional competition among jurisdictions: An evolutionary approach," Constitutional Political Economy, Springer, vol. 5(2), pages 193-219, March.
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Citations

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Cited by:
  1. H. Wolf & Claus Michelsen & Michael Schwartz, 2010. "Regional Entrepreneurial Opportunities in the Biotech Industry: Exploring the Transition from Award-winning Nascent Entrepreneurs to Real Start-ups," IWH Discussion Papers 25, Halle Institute for Economic Research.
  2. Felin, Teppo & Zenger, Todd R., 2014. "Closed or open innovation? Problem solving and the governance choice," Research Policy, Elsevier, vol. 43(5), pages 914-925.
  3. Uwe Cantner & Sarah Kösters, 2012. "Picking the winner? Empirical evidence on the targeting of R&D subsidies to start-ups," Small Business Economics, Springer, vol. 39(4), pages 921-936, November.
  4. Lehrer, Mark & Asakawa, Kazuhiro & Behnam, Michael, 2011. "Home base-compensating R&D: Indicators, public policy, and ramifications for multinational firms," Journal of International Management, Elsevier, vol. 17(1), pages 42-53, March.
  5. 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.
  6. Benner, Maximilian, 2012. "Clusterwettbewerbe: Eine Option für Entwicklungsländer?
    [Cluster competitions: An option for developing countries?]
    ," MPRA Paper 40743, University Library of Munich, Germany.
  7. 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.
  8. Faria, Pedro & Schmidt, Tobias, 2007. "International cooperation on innovation: empirical evidence for German and Portuguese firms," Discussion Paper Series 1: Economic Studies 2007,30, Deutsche Bundesbank, Research Centre.
  9. Dirk Dohse & Tanja Staehler, 2008. "BioRegio, BioProfile and the Rise of the German Biotech Industry," Kiel Working Papers 1456, Kiel Institute for the World Economy.
  10. Annalisa Caloffi & Federica Rossi & Margherita Russo, 2013. "Does participation in innovation networks improve firms' relational abilities? Evidence from a regional policy framework," DRUID Working Papers 13-07, DRUID, Copenhagen Business School, Department of Industrial Economics and Strategy/Aalborg University, Department of Business Studies.
  11. Giebe, Thomas & Grebe, Tim & Wolfstetter, Elmar, 2006. "How to allocate R&D (and other) subsidies: An experimentally tested policy recommendation," Research Policy, Elsevier, vol. 35(9), pages 1261-1272, November.
  12. Ensthaler, Ludwig & Giebe, Thomas, 2010. "A dynamic auction for multi-object procurement under a hard budget constraint," Discussion Paper Series of SFB/TR 15 Governance and the Efficiency of Economic Systems 310, Free University of Berlin, Humboldt University of Berlin, University of Bonn, University of Mannheim, University of Munich.
  13. Benz, Arthur & Böcher, Michael, 2012. "Politischer Leistungswettbewerb zwischen Regionen: Voraussetzungen, Chancen und Grenzen," Forschungs- und Sitzungsberichte der ARL: Aufsätze, in: Städte und Regionen im Standortwettbewerb, pages 71-89 Akademie für Raumforschung und Landesplanung (ARL) - Leibniz-Forum für Raumwissenschaften.
  14. 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.
  15. Michael Fritsch & Martina Kauffeld-Monz, 2008. "The impact of network structure on knowledge transfer: An application of social network analysis in the context of regional innovation networks," Jena Economic Research Papers 2008-036, Friedrich-Schiller-University Jena, Max-Planck-Institute of Economics.
  16. Michaela Trippl & Joshua von Gabain & Franz Tödtling, 2006. "Policy agents as catalysts of knowledge links in the biotechnology sector," SRE-Disc sre-disc-2006_01, Institute for the Environment and Regional Development, Department of Socioeconomics, Vienna University of Economics and Business.

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