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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

    () (CEBR, Copenhagen)

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 for the Study of Labor (IZA).
  • Handle: RePEc:iza:izadps:dp5986
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    Cited by:

    1. Kaiser, Ulrich & Kuhn, Johan M., 2016. "Worker-level and firm-level effects of a wage subsidy program for highly educated labor: Evidence from Denmark," Research Policy, Elsevier, vol. 45(9), pages 1939-1943.
    2. Chai, Sen & Shih, Willy, 2016. "Bridging science and technology through academic–industry partnerships," Research Policy, Elsevier, vol. 45(1), pages 148-158.
    3. Beck, Mathias & Junge, Martin & Kaiser, Ulrich, 2017. "Public Funding and Corporate Innovation," IZA Discussion Papers 11196, Institute for the Study of Labor (IZA).
    4. Huergo, Elena & Moreno, Lourdes, 2017. "Subsidies or loans? Evaluating the impact of R&D support programmes," Research Policy, Elsevier, vol. 46(7), pages 1198-1214.
    5. 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 - Center for Innovation, Research and Competences in the Learning Economy.
    6. 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: Handbook on the Theory and Practice of Program Evaluation, chapter 3, pages 56-88 Edward Elgar Publishing.
    7. Riccardo Crescenzi & Mara Giua & Guido de Blasio, 2018. "Cohesion Policy Incentives for Collaborative Industrial Research. The Evaluation of a Smart Specialisation Forerunner Programme," SERC Discussion Papers 0231, Spatial Economics Research Centre, LSE.
    8. Riccardo Crescenzi & Guido de Blasio & Mara Giua, 2017. "Cohesion Policy Incentives for Collaborative Industrial Research. The Evaluation of a Smart Specialisation Forerunner Programme," Department of Economics University of Siena 769, Department of Economics, University of Siena.

    More about this item

    Keywords

    research and development; research joint venture; public-private partnership; research subsidies;

    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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