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Joint R and D subsidies, related variety, and regional innovation

Author

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  • Tom Broekel

    (1 Institute of Economic and Cultural Geography, Leibniz University of Hanover, Germany, broekel@wigeo.uni-hannover.de)

  • Matthias Brachert

    (Department Structural Economics, Halle Institute for Economic Research, Germany; Matthias.Brachert@iwh-halle.de)

  • Matthias Duschl

    (Department of Geography, Philipps University of Marburg, Germany, Matthias.duschl@staff.uni-marburg.de)

  • Thomas Brenner

    (Department of Geography, Philipps University of Marburg, Germany, Philipps University of Marburg, Germany,Thomas.brenner@staff.uni-marburg.de)

Abstract

Subsidies for R and D are an important tool of public R and D policy, which motivates extensive scientific analyses and evaluations. The paper adds to this literature by arguing that the effects of R and D subsidies go beyond the extension of organizations’ monetary resources invested into R and D. It is argued that collaboration induced by subsidized joint R and D projects yield significant effects that are missed in traditional analyses. An empirical study on the level of German labor market regions substantiates this claim showing that collaborative R and D subsidies impact regions’ innovation growth when providing access to related variety and embedding regions into central positions in cross-regional knowledge networks.

Suggested Citation

  • Tom Broekel & Matthias Brachert & Matthias Duschl & Thomas Brenner, 2015. "Joint R and D subsidies, related variety, and regional innovation," Working Papers on Innovation and Space 2015-01, Philipps University Marburg, Department of Geography.
    • Handle: RePEc:pum:wpaper:2015-01
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    Cited by:

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    2. Tom Broekel & Lars Mewes, 2017. "Analyzing the impact of R&D policy on regional diversification," Papers in Evolutionary Economic Geography (PEEG) 1726, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Sep 2017.
    3. Lars Mewes & Tom Broekel, 2020. "Subsidized to change? The impact of R&D policy on regional technological diversification," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 65(1), pages 221-252, August.
    4. Inácio Fernandes de Araújo & Eduardo Gonçalves & Juliana Gonçalves Taveira, 2019. "The Role of Patent Co-inventorship Networks in Regional Inventive Performance," International Regional Science Review, , vol. 42(3-4), pages 235-280, May.

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    More about this item

    Keywords

    collaborative R and D projects; related variety; regional innovation;
    All these keywords.

    JEL classification:

    • L14 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Transactional Relationships; Contracts and Reputation
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)

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