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The relationship between R&D collaboration, subsidies and R&D performance: Empirical evidence from Finland and Germany

  • Dirk Czarnitzki
  • Bernd Ebersberger

    (Management Center Innsbruck (MCI), Universitätsstraße 15, 6020 Innsbruck, Austria)

  • Andreas Fier

    (Centre for European Economic Research (ZEW), Dept. of Industrial Economics and International Management, P.O.Box 10 34 43, 68034 Mannheim, Germany)

This study focuses on the impact of innovation policies and R&D collaboration in Germany and Finland. We consider collaboration and subsidies as heterogeneous treatments, and perform an econometric matching to analyze R&D and patent activity at the firm level. In general, we find that collaboration has positive effects. In Germany, subsidies for individual research do neither exhibit a significant impact on R&D nor on patenting, but the innovative performance could be improved by additional incentives for collaboration. For Finnish companies, public funding is an important source of finance for R&D. Without subsidies, recipients would show less R&D and patenting activity, whilst those firms not receiving subsidies would perform significantly better if they were publicly funded. Copyright © 2007 John Wiley & Sons, Ltd.

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Article provided by John Wiley & Sons, Ltd. in its journal Journal of Applied Econometrics.

Volume (Year): 22 (2007)
Issue (Month): 7 ()
Pages: 1347-1366

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Handle: RePEc:jae:japmet:v:22:y:2007:i:7:p:1347-1366
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