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Does Cluster Policy Trigger R&D Activity? Evidence from German Biotech Contests

Author

Listed:
  • Dirk Engel

    (University of Applied Science Stralsund; RWI)

  • Timo Mitze

    (RWI; Ruhr University Bochum)

  • Roberto Patuelli

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

  • Janina Reinkowski

    (ifo Munich)

Abstract

This paper evaluates the R&D enhancing effects of two large public grant schemes for the German biotechnology industry (BioRegio, BioProfile). Both grant schemes are organized in the form of contents for cooperation with the goal to foster the performance of innovative firms by their organization in research clusters. We apply a Difference-in-Differences estimation technique in a generalized linear model framework, which allows us to control for different initial regional conditions in R&D activity of the biotech sector. 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" have positive effects on R&D activity in the short-term. Apart from this direct winner effect, for the non-winning participants no beneficial indirect effect due to a mobilization of local actors during the application phase could be detected. Finally, first attempts in estimating the long-term effects of the contests for cooperation approach on the winner regions' R&D activity in the post-treatment period show ambiguous results.

Suggested Citation

  • Dirk Engel & Timo Mitze & Roberto Patuelli & Janina Reinkowski, 2011. "Does Cluster Policy Trigger R&D Activity? Evidence from German Biotech Contests," Working Paper series 15_11, Rimini Centre for Economic Analysis, revised Jan 2012.
    • Handle: RePEc:rim:rimwps:15_11
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    Cited by:

    1. 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.
    2. 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.
    3. 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 and the Associazione ICC, vol. 30(4), pages 845-867.
    4. 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.
    5. 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.
    6. Nathan, Max, 2022. "Does light touch cluster policy work? Evaluating the tech city programme," Research Policy, Elsevier, vol. 51(9).
    7. 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.
    8. 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.
    9. 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.
    10. 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.
    11. 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.
    12. 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.
    13. 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.
    14. 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.
    15. 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.
    16. Graf, Holger & Broekel, Tom, 2020. "A shot in the dark? Policy influence on cluster networks," Research Policy, Elsevier, vol. 49(3).
    17. repec:hal:pseose:hal-00975554 is not listed on IDEAS
    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. Wolf André, 2024. "Framework Conditions for Net-Zero Industry Clusters in Europe," Intereconomics: Review of European Economic Policy, Sciendo, vol. 59(5), pages 267-275.
    20. 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.
    21. 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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    JEL classification:

    • O38 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Government Policy
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models

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