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Does the support of innovative clusters sustainably foster R&D activity? Evidence from the German BioRegio and BioProfile contests

Author

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  • Dirk Engel

    (University of Applied Science Stralsund; RWI)

  • Timo Mitze

    (RWI; Ruhr University Bochum)

  • Roberto Patuelli

    (University of Lugano; The Rimini Centre for Economic Analysis (RCEA))

  • Janina Reinkowski

    (ifo Munich)

Abstract

In this paper, we evaluate the R&D enhancing effects of two large public grant schemes aiming at encouraging the performance of firms organized in clusters. These are Germany's well known BioRegio and BioProfile contests for which we compare the research performance of winning regions in contrast with non-winning and non-participating comparison regions. We apply Difference-in-Difference estimation techniques in a generalized linear model framework, which allows to control for different initial regional conditions in the biotechnology related R&D activity. 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" seems to work in the short-term. In contrast, no indirect impacts stemming from a potential mobilizing effect of the contest approaches have been detected. Also, we find only limited evidence for long-term effects of public R&D grants in the post-treatment period. The results of our analysis remain stable if we additionally augment the model to account for the particular role of spatial dependence in the R&D outcome variables.

Suggested Citation

  • Dirk Engel & Timo Mitze & Roberto Patuelli & Janina Reinkowski, 2011. "Does the support of innovative clusters sustainably foster R&D activity? Evidence from the German BioRegio and BioProfile contests," Quaderni della facoltà di Scienze economiche dell'Università di Lugano 1105, USI Università della Svizzera italiana.
  • Handle: RePEc:lug:wpaper:1105
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    1. Hiroyuki Okamuro & Junichi Nishimura, 2021. "Effects of multilevel policy mix of public R&D subsidies: Empirical evidence from Japanese local SMEs [The Impact of R&D Subsidies on R&D Employment Composition]," Science and Public Policy, Oxford University Press, vol. 48(6), pages 829-840.
    2. Hiroyuki Okamuro & Junichi Nishimura, 2020. "What Shapes Local Innovation Policies? Empirical Evidence from Japanese Cities," Administrative Sciences, MDPI, vol. 10(1), pages 1-22, February.
    3. Hiroyuki Okamuro & Junichi Nishimura, 2015. "Local Management of National Cluster Policies: Comparative Case Studies of Japanese, German, and French Biotechnology Clusters," Administrative Sciences, MDPI, vol. 5(4), pages 1-27, November.
    4. Modou Mar & Nadine Massard, 2021. "Animate the cluster or subsidize collaborative R&D? A multiple overlapping treatments approach to assess the impacts of the French cluster policy [The impact of R&D subsidies on R&D employment comp," Industrial and Corporate Change, Oxford University Press, vol. 30(4), pages 845-867.
    5. 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.
    6. Hiroyuki Okamuro & Junichi Nishimura, 2015. "Not just financial support? Another role of public subsidy in university-industry research collaborations," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 24(7), pages 633-659, October.
    7. Stefano Basilico & Uwe Cantner & Holger Graf, 2023. "Policy influence in the knowledge space: a regional application," The Journal of Technology Transfer, Springer, vol. 48(2), pages 591-622, April.
    8. Nathan, Max, 2022. "Does light touch cluster policy work? Evaluating the tech city programme," Research Policy, Elsevier, vol. 51(9).
    9. Graf, Holger & Broekel, Tom, 2020. "A shot in the dark? Policy influence on cluster networks," Research Policy, Elsevier, vol. 49(3).
    10. Blandinieres, Florence & Krieger, Bastian & Pellens, Maikel, 2021. "Cluster support activities in the German biotechnology sector," ZEW Expertises, ZEW - Leibniz Centre for European Economic Research, number 233052, November.
    11. Mitze, Timo & Strotebeck, Falk, 2019. "Determining factors of interregional research collaboration in Germany's biotech network: Capacity, proximity, policy?," Technovation, Elsevier, vol. 80, pages 40-53.
    12. Stefan Töpfer & Uwe Cantner & Holger Graf, 2019. "Structural dynamics of innovation networks in German Leading-Edge Clusters," The Journal of Technology Transfer, Springer, vol. 44(6), pages 1816-1839, December.
    13. 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.
    14. Dirk Dohse & Dirk Fornahl & Julian Vehrke, 2018. "Fostering place-based innovation and internationalization – the new turn in German technology policy," European Planning Studies, Taylor & Francis Journals, vol. 26(6), pages 1137-1159, June.
    15. Alecke, Björn & Breitfuss, Marija & Cremer, Wolfram & Hartmann, Christian & Lageman, Bernhard & Mitze, Timo & Peistrup, Matthias & Ploder, Michael & Rappen, Hermann & Rothgang, Michael, 2011. "Föderalismus und Forschungs- und Innovationspolitik: Bericht des Konsortiums "Föderalismus und Forschungs- und Innovationspolitik"," Studien zum deutschen Innovationssystem 11-2011, Expertenkommission Forschung und Innovation (EFI) - Commission of Experts for Research and Innovation, Berlin.
    16. 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.
    17. Okamuro, Hiroyuki & Nishimura, Junichi, 2018. "Whose business is your project? A comparative study of different subsidy policy schemes for collaborative R&D," Technological Forecasting and Social Change, Elsevier, vol. 127(C), pages 85-96.
    18. 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.
    19. Dirk Engel & Verena Eckl & Michael Rothgang, 2019. "R&D funding and private R&D: empirical evidence on the impact of the leading-edge cluster competition," The Journal of Technology Transfer, Springer, vol. 44(6), pages 1720-1743, December.
    20. Michael Rothgang & Bernhard Lageman & Anne-Marie Scholz, 2021. "Why are there so few hard facts about the impact of cluster policies in Germany? A critical review of evaluation studies," Review of Evolutionary Political Economy, Springer, vol. 2(1), pages 105-139, April.

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    More about this item

    Keywords

    Biotechnology; R&D Policies; Cluster; Diff-in-Diff Estimation;
    All these keywords.

    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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