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Does Cluster Policy Trigger R&D Activity? Evidence from German Biotech Contests

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  • Dirk Engel
  • Timo Mitze
  • Roberto Patuelli
  • Janina Reinkowski

Abstract

This article evaluates the research and development (R&D) enhancing effects of two large public grant schemes for the German biotechnology industry (BioRegio and BioProfile). Both grant schemes are organized in the form of contents for cooperation and aimed at fostering 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.

Suggested Citation

  • 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.
  • Handle: RePEc:taf:eurpls:v:21:y:2013:i:11:p:1735-1759
    DOI: 10.1080/09654313.2012.753689
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    Citations

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    Cited by:

    1. Hiroyuki Okamuro & Junichi Nishimura, 2015. "Local Management of National Cluster Policies: Comparative Case Studies of Japanese, German, and French Biotechnology Clusters," Administrative Sciences, MDPI, Open Access Journal, vol. 5(4), pages 1-27, November.
    2. Segarra Blasco, Agustí, 1958- & Teruel, Mercedes & Bové Sans, Miquel Àngel, 2014. "A territorial approach to R&D subsidies: Empirical evidence for Catalonian firms," Working Papers 2072/242275, Universitat Rovira i Virgili, Department of Economics.
    3. Lionel Fontagné & Pamina Koenig & Florian Mayneris & Sandra Poncet, 2013. "Cluster Policies And Firm Selection: Evidence From France," Journal of Regional Science, Wiley Blackwell, vol. 53(5), pages 897-922, December.
    4. repec:eee:tefoso:v:127:y:2018:i:c:p:85-96 is not listed on IDEAS
    5. Magali Chaudey & Marion Dessertine, 2016. "Impact sur l’emploi de la participation aux projets de R&D des pôles de compétitivité. Méthode et résultats," Working Papers 1626, Groupe d'Analyse et de Théorie Economique Lyon St-Étienne (GATE Lyon St-Étienne), Université de Lyon.
    6. Mitze, Timo & Strotebeck, Falk, 2017. "Modeling interregional research collaborations in German biotechnology using industry directory data: A quantitative social network analysis," MPRA Paper 83392, University Library of Munich, Germany.
    7. Magali Chaudey & Marion Dessertine, 2016. "Impact sur l'emploi de la participation aux projets de R&D des pôles de compétitivité. Méthode et résultats," Working Papers halshs-01361349, HAL.

    More about this item

    JEL classification:

    • O38 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Government Policy
    • R38 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Government Policy
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models

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