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Contests for Cooperation: A New Approach in German Innovation Policy

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  • Eickelpasch, Alexander
  • Fritsch, Michael

Abstract

A new approach in German innovation policy organizes contests of proposals for developing innovation networks. Based on an overview of the different programs, we investigate the advantages, problems and limitations of such an approach. We find that this type of policy may have a relatively large impact and can, therefore, be regarded as a rather efficient instrument of innovation policy. Compared to conventional policies, administration of the program is a much more critical issue. The contest approach may stimulate learning effects on the side of the administration but may also require a high degree of flexibility. The main disadvantage is the additional time that is required for conducting the contest. As a distinct "picking the winner" approach, the contest approach is not suited as a means for achieving a leveling-out of regional welfare levels.

Suggested Citation

  • Eickelpasch, Alexander & Fritsch, Michael, 2005. "Contests for Cooperation: A New Approach in German Innovation Policy," Freiberg Working Papers 2005,03, TU Bergakademie Freiberg, Faculty of Economics and Business Administration.
  • Handle: RePEc:zbw:tufwps:200503
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    References listed on IDEAS

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    1. Viktor Vanberg & Wolfgang Kerber, 1994. "Institutional competition among jurisdictions: An evolutionary approach," Constitutional Political Economy, Springer, vol. 5(2), pages 193-219, March.
    2. 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.
    3. G. M. Peter Swann & Rui Baptista, 1999. "A comparison of clustering dynamics in the US and UK computer industries," Journal of Evolutionary Economics, Springer, vol. 9(3), pages 373-399.
    4. Fritsch, Michael, 2003. "Do regional systems of innovation matter?," Freiberg Working Papers 2003,03, TU Bergakademie Freiberg, Faculty of Economics and Business Administration.
    5. Franz Tödtling & Michaela Trippl, 2004. "One size fits all? Towards a differentiated policy approach with respect to regional innovation systems," SRE-Disc sre-disc-2004_01, Institute for Multilevel Governance and Development, Department of Socioeconomics, Vienna University of Economics and Business.
    6. Rachel E. Kranton & Deborah F. Minehart, 2001. "A Theory of Buyer-Seller Networks," American Economic Review, American Economic Association, vol. 91(3), pages 485-508, June.
    7. von Hippel, Eric, 1987. "Cooperation between rivals: Informal know-how trading," Research Policy, Elsevier, vol. 16(6), pages 291-302, December.
    8. Dohse, Dirk, 2000. "Technology policy and the regions -- the case of the BioRegio contest," Research Policy, Elsevier, vol. 29(9), pages 1111-1133, December.
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    More about this item

    Keywords

    Innovationspolitik; Wettbewerb zwischen Regionen; Innovationsnetzwerke; Innovation policy; regional competition; innovation networks;

    JEL classification:

    • O38 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Government Policy
    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
    • H32 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - Firm
    • 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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