R&D crowding out or R&D leverage effects: An evaluation of the french cluster-oriented technology policy
Haithem Ben Hassine and
Claude Mathieu ()
Technological Forecasting and Social Change, 2020, vol. 155, issue C
The purpose of this paper is to provide an econometric evaluation of the impact of the French cluster policy on firm-financed research and development (R&D) and public R&D subsidies. To conduct the evaluation, we have used the conditional difference-in-difference method and mobilized business data covering a relatively long period (2006–2012) to provide a better evaluation of the policy's effects over time. Our estimates indicate that belonging to a cluster creates a significant leverage effect rather than a crowding-out effect: compared with firms outside clusters, firms inside clusters receive more R&D subsidies and invest even more in R&D. However, the leverage effect is not immediate since it appears four years after the launch of the cluster policy and is mainly driven by small- and medium-sized enterprises (SMEs). Thus, the policy should be i) pursued over time to produce tangible results and ii) relevant not only for SMEs but also for intermediate-sized firms and large firms, which can constitute the core of collaborative projects initiated within the framework of the cluster policy.
Keywords: Cluster policy evaluation; R&d subsidies; Firm-financed r&d; Conditional difference-in-difference (search for similar items in EconPapers)
JEL-codes: C31 H50 L53 O38 (search for similar items in EconPapers)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:tefoso:v:155:y:2020:i:c:s004016251831727x
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