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Joint R&D subsidies, related variety, and regional innovation

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  • Broekel, Tom
  • Brachert, Matthias
  • Duschl, Matthias
  • Brenner, Thomas

Abstract

Subsidies for R&D are an important tool of public R&D policy, which motivates extensive scientific analyses and evaluations. The paper adds to this literature by arguing that the effects of R&D subsidies go beyond the extension of organizations monetary resources invested into R&D. It is argued that collaboration induced by subsidized joint R&D projects yield significant effects that are missed in traditional analyses. An empirical study on the level of German labor market regions substantiates this claim showing that collaborative R&D subsidies impact regions innovation growth when providing access to related variety and embedding regions into central positions in cross- regional knowledge networks.

Suggested Citation

  • Broekel, Tom & Brachert, Matthias & Duschl, Matthias & Brenner, Thomas, 2015. "Joint R&D subsidies, related variety, and regional innovation," VfS Annual Conference 2015 (Muenster): Economic Development - Theory and Policy 112808, Verein für Socialpolitik / German Economic Association.
    • Handle: RePEc:zbw:vfsc15:112808
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    2. Brökel, Tom & Mewes, Lars, 2020. "Der Beitrag von Hochschulen zur Einbindung von Regionen in politisch induzierte Wissensnetzwerke," Forschungsberichte der ARL: Aufsätze, in: Postlep, Rolf-Dieter & Blume, Lorenz & Hülz, Martina (ed.), Hochschulen und ihr Beitrag für eine nachhaltige Regionalentwicklung, volume 11, pages 233-259, ARL – Akademie für Raumentwicklung in der Leibniz-Gemeinschaft.
    3. Xiguang Cao & Min Deng & Fei Song & Shihu Zhong & Junhao Zhu, 2019. "Direct and moderating effects of environmental regulation intensity on enterprise technological innovation: The case of China," PLOS ONE, Public Library of Science, vol. 14(10), pages 1-20, October.
    4. Lars Mewes & Tom Broekel, 2020. "Subsidized to change? The impact of R&D policy on regional technological diversification," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 65(1), pages 221-252, August.
    5. Bischoff, Thore Sören & Hipp, Ann & Runst, Petrik, 2022. "Firm innovation and generalized trust as a regional resource," ifh Working Papers 32/2022, Volkswirtschaftliches Institut für Mittelstand und Handwerk an der Universität Göttingen (ifh).

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    More about this item

    JEL classification:

    • L14 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Transactional Relationships; Contracts and Reputation
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)

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