Picking the Winner? - Empirical Evidence on the Targeting of R&D Subsidies to Start-ups
This paper investigates the allocation of R&D subsidies given to start-ups. Considering the coexistence of various R&D project schemes, we take an aggregate view and analyze the determinants of the receipt of (any) R&D subsidies within the first three business years of the start-ups. We argue that policymakers and funding authorities follow a strategy of "picking the winner". Analyzing a unique data set of start-ups in the East German state of Thuringia, we conduct logistic regressions and find ambiguous support. R&D subsidies are given to start-ups with innovative business ideas, especially academic spin-offs. On the other hand, the ambitions and the patent stock of the founder(s) do not decide the receipt of R&D subsidies. These insights into the overall allocation of R&D subsidies are important since they have implications for policy effectiveness and efficiency. The implied difficulties of policy targeting fundamentally question the massive subsidization of private R&D.
|Date of creation:||09 Nov 2009|
|Date of revision:|
|Contact details of provider:|| Postal: |
Phone: +049 3641/ 9 43000
Fax: +049 3641/ 9 43000
Web page: http://www.jenecon.de
More information through EDIRC
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.:
- Bronwyn H. Hall, 2003.
"The Financing of Research and Development,"
- Bronwyn Hall, 2004. "The financing of research and development," Chapters, in: Financial Systems, Corporate Investment in Innovation, and Venture Capital, chapter 2 Edward Elgar.
- Bronwyn H. Hall, 2002. "The Financing of Research and Development," Oxford Review of Economic Policy, Oxford University Press, vol. 18(1), pages 35-51, Spring.
- Hall, Bronwyn H., 2002. "The Financing of Research and Development," Department of Economics, Working Paper Series qt34c1c643, Department of Economics, Institute for Business and Economic Research, UC Berkeley.
- Hall, Bronwyn, 2002. "The Financing of Research and Development," Department of Economics, Working Paper Series qt5rf0x9gz, Department of Economics, Institute for Business and Economic Research, UC Berkeley.
- Bronwyn H. Hall, 2002. "The Financing of Research and Development," NBER Working Papers 8773, National Bureau of Economic Research, Inc.
- Aschhoff, Birgit, 2009.
"Who Gets the Money? The Dynamics of R&D Project Subsidies in Germany,"
ZEW Discussion Papers
08-018 [rev.], ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
- Birgit Aschhoff, 2010. "Who Gets the Money? The Dynamics of R&D Project Subsidies in Germany," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), Justus-Liebig University Giessen, Department of Statistics and Economics, vol. 230(5), pages 522-546, October.
- Aschhoff, Birgit, 2008. "Who Gets the Money? The Dynamics of R&D Project Subsidies in Germany," ZEW Discussion Papers 08-018, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
- Tuomas Takalo & Tanja Tanayama, 2010.
"Adverse selection and financing of innovation: is there a need for R&D subsidies?,"
The Journal of Technology Transfer,
Springer, vol. 35(1), pages 16-41, February.
- Takalo, Tuomas & Tanayama, Tanja, 2008. "Adverse selection and financing of innovation: is there a need for R&D subsidies?," Research Discussion Papers 19/2008, Bank of Finland.
- Alexander Eickelpasch & Michael Fritsch, 2005.
"Contests for Cooperation: A New Approach in German Innovation Policy,"
Discussion Papers of DIW Berlin
478, DIW Berlin, German Institute for Economic Research.
- Eickelpasch, Alexander & Fritsch, Michael, 2005. "Contests for cooperation--A new approach in German innovation policy," Research Policy, Elsevier, vol. 34(8), pages 1269-1282, October.
- Eickelpasch, Alexander & Fritsch, Michael, 2005. "Contests for Cooperation: A New Approach in German Innovation Policy," Freiberg Working Papers 2005,03, TU Bergakademie Freiberg, Faculty of Economics and Business Administration.
- Bassi, Laurie J, 1984. "Estimating the Effect of Training Programs with Non-Random Selection," The Review of Economics and Statistics, MIT Press, vol. 66(1), pages 36-43, February.
- Lerner, Josh, 1999. "The Government as Venture Capitalist: The Long-Run Impact of the SBIR Program," The Journal of Business, University of Chicago Press, vol. 72(3), pages 285-318, July.
- J. Vicente Blanes & Isabel Busom, 2004.
"WHO PARTICIPATES IN R&D SUBSIDY PROGRAMS?. The case of Spanish Manufacturing Firms,"
wpdea0407, Department of Applied Economics at Universitat Autonoma of Barcelona.
- Blanes, J. Vicente & Busom, Isabel, 2004. "Who participates in R&D subsidy programs?: The case of Spanish manufacturing firms," Research Policy, Elsevier, vol. 33(10), pages 1459-1476, December.
- Chaminade, Cristina & Edquist, Charles, 2005. "From theory to practice: the use of systems of innovation approach in innovation policy," Papers in Innovation Studies 2005/2, Lund University, CIRCLE - Center for Innovation, Research and Competences in the Learning Economy.
- Scott Shane, 2009. "Why encouraging more people to become entrepreneurs is bad public policy," Small Business Economics, Springer, vol. 33(2), pages 141-149, August.
- Heike Belitz & Frank Fleischer & Andreas Stephan, 2001. "Staatliche Förderung von Forschung und Entwicklung in der ostdeutschen Wirtschaft: eine Bilanz," DIW Wochenbericht, DIW Berlin, German Institute for Economic Research, vol. 68(35), pages 537-544.
- Luukkonen, Terttu, 2000. "Additionality of EU framework programmes1," Research Policy, Elsevier, vol. 29(6), pages 711-724, June.
- Johan Wiklund & Dean Shepherd, 2003. "Aspiring for, and Achieving Growth: The Moderating Role of Resources and Opportunities," Journal of Management Studies, Wiley Blackwell, vol. 40(8), pages 1919-1941, December.
- Uwe Cantner & Sarah Kösters, 2009. "R&D Subsidies to Start-ups - Effective Drivers of Patent Activity and Employment Growth?," Jena Economic Research Papers 2009-027, Friedrich-Schiller-University Jena, Max-Planck-Institute of Economics.
- Santarelli, Enrico & Vivarelli, Marco, 2006.
"Entrepreneurship and the Process of Firms’ Entry, Survival and Growth,"
IZA Discussion Papers
2475, Institute for the Study of Labor (IZA).
- Enrico Santarelli & Marco Vivarelli, 2007. "Entrepreneurship and the process of firms’ entry, survival and growth," Industrial and Corporate Change, Oxford University Press, vol. 16(3), pages 455-488, June.
- Michael Fritsch, 2008. "How does new business formation affect regional development? Introduction to the special issue," Small Business Economics, Springer, vol. 30(1), pages 1-14, January.
- Lundvall, Bengt-Ake & Johnson, Bjorn & Andersen, Esben Sloth & Dalum, Bent, 2002. "National systems of production, innovation and competence building," Research Policy, Elsevier, vol. 31(2), pages 213-231, February.
When requesting a correction, please mention this item's handle: RePEc:jrp:jrpwrp:2009-093. 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: (Markus Pasche)
If references are entirely missing, you can add them using this form.