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Long-Run Effects of Public-Private Research Joint Ventures: The Case of the Danish Innovation Consortia Support Scheme

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  • Kaiser, Ulrich

    (University of Zurich)

  • Kuhn, Johan Moritz

    (EPAC)

Abstract

Subsidized research joint ventures (RJVs) between public research institutions and industry have become increasingly popular in Europe and the US. We study the long-run effects of such a support scheme that has been maintained by the Danish government since 1995. To cope with identification problems we apply nearest neighbor caliper matching and conditional difference-in-difference estimation methods. Our main findings are that (i) program participation effects are instant for annual patent applications and last for three years, (ii) employment effects materialize first after one year and (iii) there are no statistically significant effects on value added or labor productivity. We further show that these overall results are primarily driven by firms that were patent active prior to joining the RJV and that there are no statistically significant effect for large firms. Both types of firms are disproportionally represented in the support program we study.

Suggested Citation

  • Kaiser, Ulrich & Kuhn, Johan Moritz, 2011. "Long-Run Effects of Public-Private Research Joint Ventures: The Case of the Danish Innovation Consortia Support Scheme," IZA Discussion Papers 5986, Institute of Labor Economics (IZA).
  • Handle: RePEc:iza:izadps:dp5986
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    Cited by:

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    7. Comin, Diego & Licht, Georg & Pellens, Maikel & Schubert, Torben, 2018. "Do Companies Benefit from Public Research Organizations? The Impact of the Fraunhofer Society in Germany," Papers in Innovation Studies 2018/7, Lund University, CIRCLE - Centre for Innovation Research.
    8. Spyros Arvanitis, 2013. "Micro-econometric approaches to the evaluation of technology-oriented public programmes: a non-technical review of the state of the art," Chapters, in: Albert N. Link & Nicholas S. Vonortas (ed.), Handbook on the Theory and Practice of Program Evaluation, chapter 3, pages 56-88, Edward Elgar Publishing.
    9. João Augusto Ferreira Freire & Eduardo Gonçalves, 2022. "Cooperation in Innovative Efforts: a Systematic Literature Review," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 13(4), pages 3364-3400, December.
    10. Cantner, Uwe & Grashof, Nils & Grebel, Thomas & Zhang, Xijie, 2023. "When Excellence is not Excellent: The Impact of the Excellence Initiative on the Relative Productivity of German Universities," MPRA Paper 118139, University Library of Munich, Germany.

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    More about this item

    Keywords

    research and development; research joint venture; public-private partnership; research subsidies;
    All these keywords.

    JEL classification:

    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • O38 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Government Policy

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