The relationship between R&D collaboration, subsidies and R&D performance: Empirical evidence from Finland and Germany

Dirk Czarnitzki, Bernd Ebersberger and Andreas Fier
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Bernd Ebersberger: Management Center Innsbruck (MCI), Universitätsstraße 15, 6020 Innsbruck, Austria, Postal: Management Center Innsbruck (MCI), Universitätsstraße 15, 6020 Innsbruck, Austria
Andreas Fier: Centre for European Economic Research (ZEW), Dept. of Industrial Economics and International Management, P.O.Box 10 34 43, 68034 Mannheim, Germany, Postal: Centre for European Economic Research (ZEW), Dept. of Industrial Economics and International Management, P.O.Box 10 34 43, 68034 Mannheim, Germany

Journal of Applied Econometrics, 2007, vol. 22, issue 7, 1347-1366

Abstract: This study focuses on the impact of innovation policies and R&D collaboration in Germany and Finland. We consider collaboration and subsidies as heterogeneous treatments, and perform an econometric matching to analyze R&D and patent activity at the firm level. In general, we find that collaboration has positive effects. In Germany, subsidies for individual research do neither exhibit a significant impact on R&D nor on patenting, but the innovative performance could be improved by additional incentives for collaboration. For Finnish companies, public funding is an important source of finance for R&D. Without subsidies, recipients would show less R&D and patenting activity, whilst those firms not receiving subsidies would perform significantly better if they were publicly funded. Copyright © 2007 John Wiley & Sons, Ltd.

Date: 2007
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DOI: 10.1002/jae.992

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