Innovation procurement as capability-building: Evaluating innovation policies in eight Central and Eastern European countries

Nebojsa Stojcic, Stjepan Srhoj and Alex Coad ()

European Economic Review, 2020, vol. 121, issue C

Abstract: After decades of impressive growth, the new member states of the European Union are once again in transition, but this time from imitation to innovation-driven competitiveness. This paper evaluates the relationship between both public funding and public procurement for innovation (PPI) and firm-level innovation output and outcome additionality, in eight Central and Eastern European countries. Matching estimates on a sample of 41,623 firms suggest that PPI has a large effect on innovation and output, and the highest additionality is sometimes achieved when firms receive both financial support and innovation-oriented public procurement. We argue that policy-makers aiming to strengthen indigenous innovation capabilities should place stronger emphasis on PPI.

Keywords: Public funding for innovation; Public procurement for innovation; Additionality; Evaluation, Central and Eastern European countries (search for similar items in EconPapers)
JEL-codes: O38 (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (60)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:eecrev:v:121:y:2020:i:c:s0014292119301904

DOI: 10.1016/j.euroecorev.2019.103330

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