The European Research Framework Programme and innovation performance of companies. An empirical impact assessment using a CDM model
The effect of the EU Research Framework Programme (FP) on European company innovation performance is analysed for the period 1998-2000. The possibility of applying for the grant might make companies engage in new projects which they would not have considered if the fund was not there. In addition, the FP programme increases collaboration with other innovation agents (e.g., universities, research labs, governments and other firms). Both the existence of FP and collaboration are simultaneously modelled when innovation performance is studied. To measure innovation performance, an input indicator (level of R&D expenditure) is used in combination with an output indicator (increase in the innovation sales). Following Crepon et al. (1998) a simultaneous equations system is used with four equations (FP, collaboration, R&D and Innovation sales). The paper finds a positive impact for the FP on collaboration, and both factors positively affect the innovation performance (R&D and Innovation sales) of European firms. No crowding-out effect is found in the analysis.
|Date of creation:||Dec 2011|
|Date of revision:|
|Contact details of provider:|| Postal: C/ Inca Garcilaso, s/n 41092 Seville|
Phone: +34 954 48 8318
Fax: +34 954 48 8300
Web page: https://ec.europa.eu/jrc/en
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Henri Delanghe & Ugur Muldur, 2007. "Ex-ante impact assessment of research programmes: The experience of the European Union's 7th Framework Programme," Science and Public Policy, Oxford University Press, vol. 34(3), pages 169-183, April.
- Luukkonen, Terttu & Nedeva, Maria, 2010. "Towards understanding integration in research and research policy," Research Policy, Elsevier, vol. 39(5), pages 674-686, June.
- Almus, Matthias & Czarnitzki, Dirk, 2001.
"The effects of public R&D subsidies on firms' innovation activities: the case of Eastern Germany,"
ZEW Discussion Papers
01-10, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
- Almus, Matthias & Czarnitzki, Dirk, 2003. "The Effects of Public R&D Subsidies on Firms' Innovation Activities: The Case of Eastern Germany," Journal of Business & Economic Statistics, American Statistical Association, vol. 21(2), pages 226-36, April.
- Stefano Breschi & Lucia Cusmano, 2002. "Unveiling the Texture of a European Research Area: Emergence of Oligarchic Networks under EU Framework Programmes," KITeS Working Papers 130, KITeS, Centre for Knowledge, Internationalization and Technology Studies, Universita' Bocconi, Milano, Italy, revised Jul 2002.
- Georghiou, Luke, 2001. "Evolving frameworks for European collaboration in research and technology," Research Policy, Elsevier, vol. 30(6), pages 891-903, June.
- Mohnen Pierre & Hoareau Cathy, 2002.
"What type of enterprise forges close links with universities and government labs? Evidence from CIS2,"
009, Maastricht University, Maastricht Economic Research Institute on Innovation and Technology (MERIT).
- Masao Nakamura & Pierre Mohnen & Cathy Hoareau, 2003. "What type of enterprise forges close links with universities and government labs? Evidence from CIS 2," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 24(2-3), pages 133-145.
- Cathy Hoareau & Pierre Mohnen, 2002. "What Type Of Enterprise Forges Close Links With Universities And Government Labs? Evidence From CIS 2," CIRANO Working Papers 2002s-25, CIRANO.
- Sebastien Lechevalier & Yukio Ikeda & Junichi Nishimura, 2010.
"The effect of participation in government consortia on the R&D productivity of firms: a case study of robot technology in Japan,"
Economics of Innovation and New Technology,
Taylor & Francis Journals, vol. 19(8), pages 669-692.
- Lechevalier, Sébastien & Ikeda, Yukio & Nishimura, Junichi, 2008. "The Effect of Participation in Government Consortia on the R&D Productivity of Firms: A Case Study of Robot Technology in Japan," Discussion Paper Series a500, Institute of Economic Research, Hitotsubashi University.
- Klette, Tor Jakob & Moen, Jarle & Griliches, Zvi, 2000. "Do subsidies to commercial R&D reduce market failures? Microeconometric evaluation studies1," Research Policy, Elsevier, vol. 29(4-5), pages 471-495, April.
- Xulia González & Jordi Jaumandreu & Consuelo Pazo, 2005.
"Barriers to Innovation and Subsidy Effectiveness,"
RAND Journal of Economics,
The RAND Corporation, vol. 36(4), pages 930-949, Winter.
- Michele Cincera & Henri Capron, 2007.
"EU pre-competitive and near-the-market S&T collaborations,"
DULBEA Working Papers
07-17.RS, ULB -- Universite Libre de Bruxelles.
- Henri Capron & Michele Cincera, 2007. "EU pre-competitive and near-the-market S&T collaborations," Brussels Economic Review, ULB -- Universite Libre de Bruxelles, vol. 50(1), pages 135-159.
- Bruno Van Pottelsberghe & Dominique Guellec, 2003.
"The impact of public R&D expenditure on business R&D,"
ULB Institutional Repository
2013/6213, ULB -- Universite Libre de Bruxelles.
- Dominique Guellec & Bruno Van Pottelsberghe De La Potterie, 2003. "The impact of public R&D expenditure on business R&D," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 12(3), pages 225-243.
- Dominique Guellec & Bruno van Pottelsberghe de la Potterie, 2000. "The Impact of Public R&D Expenditure on Business R&D," OECD Science, Technology and Industry Working Papers 2000/4, OECD Publishing.
- Lach, Saul, 2002.
"Do R&D Subsidies Stimulate or Displace Private R&D? Evidence from Israel,"
Journal of Industrial Economics,
Wiley Blackwell, vol. 50(4), pages 369-90, December.
- Saul Lach, 2000. "Do R&D Subsidies Stimulate or Displace Private R&D? Evidence from Israel," NBER Working Papers 7943, National Bureau of Economic Research, Inc.
- Young-Soon Hwang & Hong-Ghi Min & Seung-Hun Han, 2010. "The Influence of Financial Development on R&D Activity: Cross-Country Evidence," Review of Pacific Basin Financial Markets and Policies (RPBFMP), World Scientific Publishing Co. Pte. Ltd., vol. 13(03), pages 381-401.
- Richard R. Nelson, 1959. "The Simple Economics of Basic Scientific Research," Journal of Political Economy, University of Chicago Press, vol. 67, pages 297.
- Liliana Gelabert & Andrea Fosfuri & Josep A. Tribó, 2009. "DOES THE EFFECT OF PUBLIC SUPPORT FOR R&D DEPEND ON THE DEGREE OF APPROPRIABILITY? -super-," Journal of Industrial Economics, Wiley Blackwell, vol. 57(4), pages 736-767, December.
- Isabel Busom, 2000. "An Empirical Evaluation of The Effects of R&D Subsidies," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 9(2), pages 111-148.
- Czarnitzki, Dirk & Hanel, Petr & Rosa, Julio Miguel, 2004.
"Evaluating the Impact of R&D Tax Credits on Innovation: A Microeconometric Study on Canadian Firms,"
ZEW Discussion Papers
04-77, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
- Czarnitzki, Dirk & Hanel, Petr & Rosa, Julio Miguel, 2011. "Evaluating the impact of R&D tax credits on innovation: A microeconometric study on Canadian firms," Research Policy, Elsevier, vol. 40(2), pages 217-229, March.
- Petr Hanel & Dirk Czarnitzki & Julio Miguel Rosa, 2005. "Evaluating the Impact of R&D Tax Credits on Innovation: A Microeconometric Study on Canadian Firms," Cahiers de recherche 05-01, Departement d'Economique de l'École de gestion à l'Université de Sherbrooke.
- Dirk Czarnitzki & Georg Licht, 2006. "Additionality of public R&D grants in a transition economy," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 14(1), pages 101-131, 03.
- Holger Gorg & Eric Strobl, 2007. "The Effect of R&D Subsidies on Private R&D," Economica, London School of Economics and Political Science, vol. 74(294), pages 215-234, 05.
- Manfred Paier & Thomas Scherngell, 2011. "Determinants of Collaboration in European R&D Networks: Empirical Evidence from a Discrete Choice Model," Industry and Innovation, Taylor & Francis Journals, vol. 18(1), pages 89-104.
- Arthur M. Diamond, 1999. "Does Federal Funding "Crowd In" Private Funding Of Science?," Contemporary Economic Policy, Western Economic Association International, vol. 17(4), pages 423-431, October.
- Kris Aerts & Dirk Czarnitzki, 2009. "The Returns to Public Research Funding," Chapters, in: European Science and Technology Policy, chapter 7 Edward Elgar Publishing.
- Hall, Bronwyn & Van Reenen, John, 2000. "How effective are fiscal incentives for R&D? A review of the evidence," Research Policy, Elsevier, vol. 29(4-5), pages 449-469, April.
- Giovanni Cerulli, 2010. "Modelling and Measuring the Effect of Public Subsidies on Business R&D: A Critical Review of the Econometric Literature," The Economic Record, The Economic Society of Australia, vol. 86(274), pages 421-449, 09.
When requesting a correction, please mention this item's handle: RePEc:ipt:wpaper:201107. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Institute Publication Officer)
If references are entirely missing, you can add them using this form.