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Public R&D Policy: The Right Turns of the Wrong Screw? The Case of the German Biotechnology Industry

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  • Fier, Andreas
  • Heneric, Oliver

Abstract

The German biotechnology industry missed the accession of this key technology in the 1980s. Policy makers make different efforts to overcome shortcomings and recent gaps. Public funding schemes have been implemented to establish a flourish biotech industry in Germany. We assume that R&D policy was driven blind by the idea to catch up with world?s biotech leaders and analyse if Germany?s R&D policy lost its origins. We do examine, if Germany sacrifice economic funding principles, in particular not discriminating different kinds of ?risk? in the field of biotechnology. The study combines survey data of German biotech companies and public R&D funding data on the firm level. The results shed light on the factors which determine public R&D funding and firm?s probability of being funded.

Suggested Citation

  • Fier, Andreas & Heneric, Oliver, 2005. "Public R&D Policy: The Right Turns of the Wrong Screw? The Case of the German Biotechnology Industry," ZEW Discussion Papers 05-60, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
  • Handle: RePEc:zbw:zewdip:4543
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    References listed on IDEAS

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    Cited by:

    1. Simachev, Yuri & Kuzyk, Mikhail & Feygina, Vera, 2014. "Russian policies in support of innovation: elusive quest for efficiency," MPRA Paper 56750, University Library of Munich, Germany.

    More about this item

    Keywords

    Biotechnology; Public Policy; Innovation; Subsidies;

    JEL classification:

    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
    • L21 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Business Objectives of the Firm
    • H32 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - Firm
    • M13 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - New Firms; Startups
    • L65 - Industrial Organization - - Industry Studies: Manufacturing - - - Chemicals; Rubber; Drugs; Biotechnology; Plastics
    • O38 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Government Policy

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