European cooperative R&D and firm performance: Evidence based on funding differences in key actions
Luis Aguiar and
Philippe Gagnepain
International Journal of Industrial Organization, 2017, vol. 53, issue C, 1-31
Abstract:
The Framework programmes created by the European Union are the main financial tools used to support cooperative R&D activities in the EU. Unlike previous empirical studies, this paper suggests that their impact on firms’ competitiveness is significant. We analyze industry-oriented research joint ventures supported by the Fifth European Framework Programme between 1998 and 2002. A key feature of this Programme is that funding is available to the firms based on social and economic concerns instead of pure performance criteria, which guarantees that financial support is not granted conditional on technological opportunities. This allows us to identify the causal effect of the programme on firms’ performance using the funding available to the firms in their respective industries as a source of exogenous variation in the decision to participate in the programme. Our results suggest that participation in research projects may raise labor productivity by at least 44.4% while it has very limited effect on profit margin.
Keywords: R&D cooperation; Firm performance; EU framework programme; Policy evaluation (search for similar items in EconPapers)
JEL-codes: H81 L2 O31 O32 O38 (search for similar items in EconPapers)
Date: 2017
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (28)
Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0167718717301728
Full text for ScienceDirect subscribers only
Related works:
Working Paper: European cooperative R&D and firm performance: Evidence based on funding differences in key actions (2017)
Working Paper: European cooperative R&D and firm performance: Evidence based on funding differences in key actions (2017)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
HTML/Text
Persistent link: https://EconPapers.repec.org/RePEc:eee:indorg:v:53:y:2017:i:c:p:1-31
DOI: 10.1016/j.ijindorg.2016.12.007
Access Statistics for this article
International Journal of Industrial Organization is currently edited by P. Bajari, B. Caillaud and N. Gandal
More articles in International Journal of Industrial Organization from Elsevier
Bibliographic data for series maintained by Catherine Liu ().