IDEAS home Printed from https://ideas.repec.org/p/wiw/wiwrsa/ersa03p100.html
   My bibliography  Save this paper

An Ex Ante Evaluation Framework for the Regional Impact of Publicly Supported R&D Projects

Author

Listed:
  • Stephen Roper
  • Nola Hewitt-Dundas
  • James H Love

Abstract

This paper draws on the knowledge-base implicit in ex post evaluations of publicly funded R&D and other related conceptual and empirical studies to suggest a framework for the ex ante evaluation of the regional benefits from R&D projects. The framework developed comprises two main elements: an inventory of the global private and social benefits which might result from any R&D project; and, an assessment of the share of these global benefits which might accrue to a host region, taking into account the characteristics of the R&D project and the region?s innovation system. The inventory of global benefits separately identifies private and social benefits and distinguishes between increments to public and private knowledge stocks, benefits to R&D productivity and benefits from commercialisation. Potential market and ?pure? knowledge spillovers are also considered separately. The paper concludes with the application of the framework to two illustrative case-studies one relating to a collaborative company-university project and one relating to a university only research centre.

Suggested Citation

  • Stephen Roper & Nola Hewitt-Dundas & James H Love, 2003. "An Ex Ante Evaluation Framework for the Regional Impact of Publicly Supported R&D Projects," ERSA conference papers ersa03p100, European Regional Science Association.
  • Handle: RePEc:wiw:wiwrsa:ersa03p100
    as

    Download full text from publisher

    File URL: https://www-sre.wu.ac.at/ersa/ersaconfs/ersa03/cdrom/papers/100.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Bresnahan, Timothy F. & Trajtenberg, M., 1995. "General purpose technologies 'Engines of growth'?," Journal of Econometrics, Elsevier, vol. 65(1), pages 83-108, January.
    2. ten Raa, Thijs & Wolff, Edward N., 2000. "Engines of growth in the US economy," Structural Change and Economic Dynamics, Elsevier, vol. 11(4), pages 473-489, December.
    3. Lacroix, Robert & Martin, Fernand, 1988. "Government and the decentralization of R&D," Research Policy, Elsevier, vol. 17(6), pages 363-373, December.
    4. Crepon, B. & Duguet, E. & Mairesse, J., 1998. "Research Investment, Innovation and Productivity: An Econometric Analysis at the Firm Level," Papiers d'Economie Mathématique et Applications 98.15, Université Panthéon-Sorbonne (Paris 1).
    5. Veugelers, Reinhilde & Cassiman, Bruno, 1999. "Make and buy in innovation strategies: evidence from Belgian manufacturing firms," Research Policy, Elsevier, vol. 28(1), pages 63-80, January.
    6. Roper, Stephen & Frenkel, Amnon, 1999. "Different Paths to Success: The Growth of the Electronics Sector in Ireland and Israel," ERSA conference papers ersa99pa302, European Regional Science Association.
    7. Acs, Zoltan J & Audretsch, David B & Feldman, Maryann P, 1994. "R&D Spillovers and Recipient Firm Size," The Review of Economics and Statistics, MIT Press, vol. 76(2), pages 336-340, May.
    8. Adam B. Jaffe & Manuel Trajtenberg & Rebecca Henderson, 1993. "Geographic Localization of Knowledge Spillovers as Evidenced by Patent Citations," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 108(3), pages 577-598.
    9. Hans Loof & Almas Heshmati, 2006. "On the relationship between innovation and performance: A sensitivity analysis," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 15(4-5), pages 317-344.
    10. Fujita,Masahisa & Thisse,Jacques-François, 2013. "Economics of Agglomeration," Cambridge Books, Cambridge University Press, number 9781107001411, January.
    11. Egeln, Juergen & Gottschalk, Sandra & Rammer, Dr. Christian, 2002. "Regional knowledge transfer through public research spin-offs," ERSA conference papers ersa02p184, European Regional Science Association.
    12. Tor Jakob Klette & Frode Johansen, 1998. "Accumulation of R&D Capital and Dynamic Firm Performance: A Not-So-Fixed Effect Model," Annals of Economics and Statistics, GENES, issue 49-50, pages 389-419.
    13. Meyer-Krahmer, Frieder & Gilelow, Gisela & Kuntze, Uwe, 1983. "Impacts of government incentives towards industrial innovation : An analysis of the federal programme funding R&D personnel in the Federal Republic of Germany," Research Policy, Elsevier, vol. 12(3), pages 153-169, June.
    14. Edwin Mansfield & John Rapoport & Anthony Romeo & Samuel Wagner & George Beardsley, 1977. "Social and Private Rates of Return from Industrial Innovations," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 91(2), pages 221-240.
    15. David, Paul A. & Hall, Bronwyn H., 2000. "Heart of darkness: modeling public-private funding interactions inside the R&D black box," Research Policy, Elsevier, vol. 29(9), pages 1165-1183, December.
    16. Cohen, Wesley M. & Levin, Richard C., 1989. "Empirical studies of innovation and market structure," Handbook of Industrial Organization, in: R. Schmalensee & R. Willig (ed.), Handbook of Industrial Organization, edition 1, volume 2, chapter 18, pages 1059-1107, Elsevier.
    17. Ballesteros, Juan Acosta & Rico, Aurelia Modrego, 2001. "Public financing of cooperative R&D projects in Spain: the Concerted Projects under the National R&D Plan," Research Policy, Elsevier, vol. 30(4), pages 625-641, April.
    18. repec:adr:anecst:y:1998:i:49-50:p:15 is not listed on IDEAS
    19. Branstetter, Lee G., 2001. "Are knowledge spillovers international or intranational in scope?: Microeconometric evidence from the U.S. and Japan," Journal of International Economics, Elsevier, vol. 53(1), pages 53-79, February.
    20. Nadiri, M.I., 1993. "Innovations and Technological Spillovers," Working Papers 93-31, C.V. Starr Center for Applied Economics, New York University.
    21. David M. Levy & Nestor E. Terleckyj, 1983. "Effects of Government R&D on Private R&D Investment and Productivity: A Macroeconomic Analysis," Bell Journal of Economics, The RAND Corporation, vol. 14(2), pages 551-561, Autumn.
    22. Klette, Tor Jakob & Moen, Jarle & Griliches, Zvi, 2000. "Do subsidies to commercial R&D reduce market failures? Microeconometric evaluation studies1," Research Policy, Elsevier, vol. 29(4-5), pages 471-495, April.
    23. Breschi, Stefano & Lissoni, Francesco, 2001. "Knowledge Spillovers and Local Innovation Systems: A Critical Survey," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 10(4), pages 975-1005, December.
    24. Smith, Keith, 1989. "Public support for civil R&D in the U.K.: Limitations of recent policy debate," Research Policy, Elsevier, vol. 18(2), pages 99-109, April.
    25. Irwin, Douglas A. & Klenow, Peter J., 1996. "High-tech R&D subsidies Estimating the effects of Sematech," Journal of International Economics, Elsevier, vol. 40(3-4), pages 323-344, May.
    26. Love, James H. & Roper, Stephen, 2001. "Location and network effects on innovation success: evidence for UK, German and Irish manufacturing plants," Research Policy, Elsevier, vol. 30(4), pages 643-661, April.
    27. Audretsch, David B & Feldman, Maryann P, 1996. "R&D Spillovers and the Geography of Innovation and Production," American Economic Review, American Economic Association, vol. 86(3), pages 630-640, June.
    28. Stephen Roper & Amnon Frenkel, 2000. "Different Paths to Success—The Growth of the Electronics Sector in Ireland and Israel," Environment and Planning C, , vol. 18(6), pages 651-665, December.
    29. Bruno Van Pottelsberghe & Dominique Guellec, 2001. "The effectiveness of public policies in R&D," ULB Institutional Repository 2013/6225, ULB -- Universite Libre de Bruxelles.
    30. Reddy, Prasada, 1997. "New trends in globalization of corporate R&D and implications for innovation capability in host countries: A survey from India," World Development, Elsevier, vol. 25(11), pages 1821-1837, November.
    31. Jaffe, Adam B, 1989. "Real Effects of Academic Research," American Economic Review, American Economic Association, vol. 79(5), pages 957-970, December.
    32. Luukkonen, Terttu, 2000. "Additionality of EU framework programmes1," Research Policy, Elsevier, vol. 29(6), pages 711-724, June.
    33. Wallsten, Scott J., 2001. "An empirical test of geographic knowledge spillovers using geographic information systems and firm-level data," Regional Science and Urban Economics, Elsevier, vol. 31(5), pages 571-599, September.
    34. Eaton, Jonathan & Kortum, Samuel, 1996. "Trade in ideas Patenting and productivity in the OECD," Journal of International Economics, Elsevier, vol. 40(3-4), pages 251-278, May.
    35. Loof, Hans & Heshmati, Almas, 2002. "Knowledge capital and performance heterogeneity: : A firm-level innovation study," International Journal of Production Economics, Elsevier, vol. 76(1), pages 61-85, March.
    36. Bania, Neil & Eberts, Randall W & Fogarty, Michael S, 1993. "Universities and the Startup of New Companies: Can We Generalize from Route 128 and Silicon Valley?," The Review of Economics and Statistics, MIT Press, vol. 75(4), pages 761-766, November.
    37. Bruno Crepon & Emmanuel Duguet & Jacques Mairesse, 1998. "Research, Innovation And Productivity: An Econometric Analysis At The Firm Level," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 7(2), pages 115-158.
    38. K. J. Arrow, 1971. "The Economic Implications of Learning by Doing," Palgrave Macmillan Books, in: F. H. Hahn (ed.), Readings in the Theory of Growth, chapter 11, pages 131-149, Palgrave Macmillan.
    39. M. Ishaq Nadiri, 1993. "Innovations and Technological Spillovers," NBER Working Papers 4423, National Bureau of Economic Research, Inc.
    40. Acs, Zoltan J & Audretsch, David B & Feldman, Maryann P, 1992. "Real Effects of Academic Research: Comment," American Economic Review, American Economic Association, vol. 82(1), pages 363-367, March.
    41. Edwin Mansfield & Lorne Switzer, 1984. "Effects of Federal Support on Company-Financed R and D: The Case of Energy," Management Science, INFORMS, vol. 30(5), pages 562-571, May.
    42. Richard R. Nelson, 1959. "The Simple Economics of Basic Scientific Research," Journal of Political Economy, University of Chicago Press, vol. 67, pages 297-297.
    43. Dobkins, Linda Harris, 1996. "Location, innovation and trade: The role of localization and nation-based externalities," Regional Science and Urban Economics, Elsevier, vol. 26(6), pages 591-612, December.
    44. Veugelers, Reinhilde & Cassiman, Bruno, 2002. "Complementarity in the Innovation Strategy: Internal R&D, External Technology Acquisition and Cooperation," CEPR Discussion Papers 3284, C.E.P.R. Discussion Papers.
    45. Luis Miotti & Serge Perrin & Frederique Sachwald, 2001. "Multinationales emergentes : un modele coreen ?," Economie Internationale, CEPII research center, issue 85, pages 37-61.
    46. Dosi, Giovanni, 1988. "Sources, Procedures, and Microeconomic Effects of Innovation," Journal of Economic Literature, American Economic Association, vol. 26(3), pages 1120-1171, September.
    47. Blind, Knut & Grupp, Hariolf, 1999. "Interdependencies between the science and technology infrastructure and innovation activities in German regions: empirical findings and policy consequences," Research Policy, Elsevier, vol. 28(5), pages 451-468, June.
    48. Brouwer, Erik & Kleinknecht, Alfred, 1996. "Firm Size, Small Business Presence and Sales of Innovative Products: A Micro-econometric Analysis," Small Business Economics, Springer, vol. 8(3), pages 189-201, June.
    49. Luc Anselin & Attila Varga & Zoltan Acs, 2008. "Geographical Spillovers and University Research: A Spatial Econometric Perspective," Chapters, in: Entrepreneurship, Growth and Public Policy, chapter 10, pages 122-134, Edward Elgar Publishing.
    50. Dominique Guellec & Bruno Van Pottelsbergue De La Potterie, 2001. "The Effectiveness of Public Policies in R&D," Revue d'Économie Industrielle, Programme National Persée, vol. 94(1), pages 49-68.
    51. Oerlemans, L.A.G. & Meeus, M.T.H. & Boekema, F.W.M., 1998. "Do networks matter for innovation? The usefulness of the network approach in analysing innovation," Other publications TiSEM b5b01e96-86f7-4fdf-95c0-4, Tilburg University, School of Economics and Management.
    52. Nasierowski, W. & Arcelus, F. J., 1999. "Interrelationships among the elements of national innovation systems: A statistical evaluation," European Journal of Operational Research, Elsevier, vol. 119(2), pages 235-253, December.
    53. Audretsch, David B, 1998. "Agglomeration and the Location of Innovative Activity," Oxford Review of Economic Policy, Oxford University Press and Oxford Review of Economic Policy Limited, vol. 14(2), pages 18-29, Summer.
    54. Zvi Griliches, 1998. "The Search for R&D Spillovers," NBER Chapters,in: R&D and Productivity: The Econometric Evidence, pages 251-268 National Bureau of Economic Research, Inc.
    55. Cassiman, Bruno & Veugelers, Reinhilde, 2002. "Complementarity in the innovation strategy: Internal R&D, external technology acquisition, and cooperation in R&D," IESE Research Papers D/457, IESE Business School.
    56. Georghiou, Luke & Roessner, David, 2000. "Evaluating technology programs: tools and methods," Research Policy, Elsevier, vol. 29(4-5), pages 657-678, April.
    57. repec:crs:wpaper:9833 is not listed on IDEAS
    58. Stephen Roper, 2001. "Innovation, Networks and Plant Location: Some Evidence for Ireland," Regional Studies, Taylor & Francis Journals, vol. 35(3), pages 215-228.
    59. Zucker, Lynne G & Darby, Michael R & Brewer, Marilynn B, 1998. "Intellectual Human Capital and the Birth of U.S. Biotechnology Enterprises," American Economic Review, American Economic Association, vol. 88(1), pages 290-306, March.
    60. Leon A.G. Oerlemans & Marius T.H. Meeus & Frans W.M. Boekema, 1998. "Do Networks Matter for Innovation? The usefulness of the economic network approach in analysing innovation," Tijdschrift voor Economische en Sociale Geografie, Royal Dutch Geographical Society KNAG, vol. 89(3), pages 298-309, August.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Roper, Stephen & Hewitt-Dundas, Nola & Love, James H., 2004. "An ex ante evaluation framework for the regional benefits of publicly supported R&D projects," Research Policy, Elsevier, vol. 33(3), pages 487-509, April.
    2. Cohen, Wesley M., 2010. "Fifty Years of Empirical Studies of Innovative Activity and Performance," Handbook of the Economics of Innovation, in: Bronwyn H. Hall & Nathan Rosenberg (ed.), Handbook of the Economics of Innovation, edition 1, volume 1, chapter 0, pages 129-213, Elsevier.
    3. Castellacci, Fulvio, 2008. "Innovation and the competitiveness of industries: comparing the mainstream and the evolutionary approaches," MPRA Paper 27523, University Library of Munich, Germany.
    4. Hall, Bronwyn H. & Mairesse, Jacques & Mohnen, Pierre, 2010. "Measuring the Returns to R&D," Handbook of the Economics of Innovation, in: Bronwyn H. Hall & Nathan Rosenberg (ed.), Handbook of the Economics of Innovation, edition 1, volume 2, chapter 0, pages 1033-1082, Elsevier.
    5. Fulvio Castellacci, 2007. "Technological regimes and sectoral differences in productivity growth ," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 16(6), pages 1105-1145, December.
    6. Roper, Stephen & Hewitt-Dundas, Nola, 2015. "Knowledge stocks, knowledge flows and innovation: Evidence from matched patents and innovation panel data," Research Policy, Elsevier, vol. 44(7), pages 1327-1340.
    7. Conte, Andrea & Vivarelli, Marco, 2005. "One or Many Knowledge Production Functions? Mapping Innovative Activity Using Microdata," IZA Discussion Papers 1878, Institute of Labor Economics (IZA).
    8. Roper, Stephen & Arvanitis, Spyros, 2012. "From knowledge to added value: A comparative, panel-data analysis of the innovation value chain in Irish and Swiss manufacturing firms," Research Policy, Elsevier, vol. 41(6), pages 1093-1106.
    9. Hewitt-Dundas, Nola & Roper, Stephen, 2011. "Creating advantage in peripheral regions: The role of publicly funded R&D centres," Research Policy, Elsevier, vol. 40(6), pages 832-841, July.
    10. Garcia-Quevedo, Jose, 2000. "University Research And The Location Of Innovative Activities In Spain," ERSA conference papers ersa00p178, European Regional Science Association.
    11. Schubert, Torben & Jäger, Angela & Türkeli, Serdar & Visentin, Fabiana, 2020. "Addressing the productivity paradox with big data: A literature review and adaptation of the CDM econometric model," MERIT Working Papers 2020-050, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    12. Klette, Tor Jakob & Moen, Jarle & Griliches, Zvi, 2000. "Do subsidies to commercial R&D reduce market failures? Microeconometric evaluation studies1," Research Policy, Elsevier, vol. 29(4-5), pages 471-495, April.
    13. Roper, Stephen & Du, Jun & Love, James H., 2008. "Modelling the innovation value chain," Research Policy, Elsevier, vol. 37(6-7), pages 961-977, July.
    14. Ronde, Patrick & Hussler, Caroline, 2005. "Innovation in regions: What does really matter?," Research Policy, Elsevier, vol. 34(8), pages 1150-1172, October.
    15. Roper, Stephen & Smallbone, David & Vickers, Ian & North, David & Hewitt-Dundas, Nola, 2002. "Innovation and business performance - a provisional multi-regional analysis," ERSA conference papers ersa02p365, European Regional Science Association.
    16. Park, Joonkyung, 2004. "Economic Growth and Innovation System: Regional Innovation System," KDI Research Monographs, Korea Development Institute (KDI), volume 127, number 200401.
    17. Andrés Barge-Gil & Alberto López, 2015. "R versus D: estimating the differentiated effect of research and development on innovation results," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 24(1), pages 93-129.
    18. Lawrence A. Plummer & Zoltán J. Ács, 2015. "Localized competition in the knowledge spillover theory of entrepreneurship," Chapters, in: Global Entrepreneurship, Institutions and Incentives, chapter 8, pages 145-160, Edward Elgar Publishing.
    19. Ernest Miguélez & Rosina Moreno, 2013. "Do Labour Mobility and Technological Collaborations Foster Geographical Knowledge Diffusion? The Case of European Regions," Growth and Change, Wiley Blackwell, vol. 44(2), pages 321-354, June.
    20. Dario Guarascio & Mario Pianta & Francesco Bogliacino, 2017. "Export, R&D and New Products: A Model and a Test on European Industries," Economic Complexity and Evolution, in: Andreas Pyka & Uwe Cantner (ed.), Foundations of Economic Change, pages 393-432, Springer.

    More about this item

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wiw:wiwrsa:ersa03p100. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Gunther Maier (email available below). General contact details of provider: http://www.ersa.org .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.