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Stimulating the Division of Innovative Labor by Regional Competition for R&D Subsidies – A New Approach in German Innovation Policy

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  • Alexander Eickelpasch

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  • Michael Fritsch

    ()

Abstract

The paper deals with a new approach in German innovation policy that organizes contests of initiatives for public funds. Based on an overview of the different programs we investigate the advantages and problems of such an approach. We find that this type of policy may have a large impact and can, therefore, be regarded a rather efficient instrument of innovation policy. Compared to conventional policies implementation is a much more critical issue. The contest approach may require more flexibility on the side of the administration, particularly with regard to the design of the assistance. The main disadvantage is the additional time that is required for conducting the contest. As a distinct “picking the winner” instrument it is not suited as a means for achieving a leveling-out of welfare levels. Keywords: Innovation policy, regional competition, innovation networks JEL-classification: H32, O18, O38, R11

Suggested Citation

  • Alexander Eickelpasch & Michael Fritsch, 2004. "Stimulating the Division of Innovative Labor by Regional Competition for R&D Subsidies – A New Approach in German Innovation Policy," ERSA conference papers ersa04p376, European Regional Science Association.
  • Handle: RePEc:wiw:wiwrsa:ersa04p376
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    File URL: http://www-sre.wu.ac.at/ersa/ersaconfs/ersa04/PDF/376.pdf
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    References listed on IDEAS

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    1. Cooke, Philip & Gomez Uranga, Mikel & Etxebarria, Goio, 1997. "Regional innovation systems: Institutional and organisational dimensions," Research Policy, Elsevier, vol. 26(4-5), pages 475-491, December.
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    Cited by:

    1. Martina Kauffeld-Monz, 2005. "Knowledge spillovers within regional networks of innovation and the contribution made by public research," ERSA conference papers ersa05p440, European Regional Science Association.

    More about this item

    JEL classification:

    • H32 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - Firm
    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
    • O38 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Government Policy
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes

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    1. Socio-Economics of Innovation

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