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The virtue of industry-science collaborations

  • Czarnitzki, Dirk


    (KU Leuven)

This article analyzes the potential benefits of industry-science collaborations for samples of Flemish and German firms. A firm collaborating with science may benefit from knowledge spillovers and public subsidies as industry-science collaborations are often granted preferred treatment. I shed light on the potential spillover and subsidy effects by estimating treatment effect models using nearest neighbour matching techniques. For both countries, I find positive effects on business R&D. Firms that engage in industry-science collaborations invest more in R&D compared to the counterfactual situation where they would not collaborate with science. Furthermore, within the sample of firms collaborating with science, a subsidy for that collaboration leads, on average, to higher R&D in the involved firms. Thus there is no full crowding-out of subsidies targeted to science-industry collaborations.

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Paper provided by European Investment Bank, Economics Department in its series EIB Papers with number 5/2009.

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Length: 23 pages
Date of creation: 23 Dec 2009
Date of revision:
Handle: RePEc:ris:eibpap:2009_005
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