When subsidized R&D-firms fail, do they still stimulate growth? Tracing knowledge by following employees across firms
Public R&D subsidies aim to target particularly risky R&D and R&D with large externalities. One would expect many such projects to fail from a commercial point of view, but they may still produce knowledge with social value. Such knowledge is likely to be embodied in workers or teams of workers. I utilize a large matched employer-employee data set and test for knowledge diffusion from subsidised technology firms transmitted through the labor market. The specific case analysed is a series of Norwegian IT-programs so far considered unsuccessful, but which have been linked to the rise of a new generation of successful IT-firms. It has been argued that know-how and networks built up in leading companies during the programs still `fertilize' the IT-industry even though many of the companies have exited. I find limited support for this claim. On the positive side, the market value of work experience from subsidized firms does not seem to have been reduced by the fact that the firms did not succeed commercially, but workers from subsidized firms have not outperformed similar workers without this experience, either. Furthermore, firms that are spin-offs from formerly subsidized firms seem to perform below, rather than above average.
|Date of creation:||Dec 2004|
|Date of revision:|
|Contact details of provider:|| Postal: P.O.Box 8131 Dep, N-0033 Oslo, Norway|
Phone: (+47) 21 09 00 00
Fax: (+47) 21 09 49 73
Web page: http://www.ssb.no/en/
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.:
- Scott Stern, 1999. "Do Scientists Pay to Be Scientists?," NBER Working Papers 7410, National Bureau of Economic Research, Inc.
- Bresnahan, Timothy F. & Trajtenberg, M., 1995.
"General purpose technologies 'Engines of growth'?,"
Journal of Econometrics,
Elsevier, vol. 65(1), pages 83-108, January.
- Jarle Moen, 2005.
"Is Mobility of Technical Personnel a Source of R&D Spillovers?,"
Journal of Labor Economics,
University of Chicago Press, vol. 23(1), pages 81-114, January.
- Jarle Møen, 2000. "Is Mobility of Technical Personnel a Source of R&D Spillovers?," NBER Working Papers 7834, National Bureau of Economic Research, Inc.
- Paul Almeida & Bruce Kogut, 1999. "Localization of Knowledge and the Mobility of Engineers in Regional Networks," Management Science, INFORMS, vol. 45(7), pages 905-917, July.
- Klette, T.J. & Moen, J., 1998.
"From Growth Theory to Technology Policy -Coordination Problems in Theory and Practice,"
20/98, Norwegian School of Economics and Business Administration-.
- Tor Jakob Klette & Jarle Møen, 1999. "From Growth Theory to Technology Policy - Coordination Problems in Theory and Practice," Nordic Journal of Political Economy, Nordic Journal of Political Economy, vol. 25, pages 53-74.
- Tor Jakob Klette & Jarle Møen, 1998. "From Growth Theory to Technology Policy - Coordination Problems in Theory and Practice," Discussion Papers 219, Statistics Norway, Research Department.
When requesting a correction, please mention this item's handle: RePEc:ssb:dispap:399. 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: (J Bruusgaard)
If references are entirely missing, you can add them using this form.