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Systemic aspects of R&D policy subsidies for R&D collaborations and their effects on private R&D

Dirk Engel, Michael Rothgang () and Verena Eckl

Industry and Innovation, 2016, vol. 23, issue 2, 206-222

Abstract: This paper analyses how context- and time-dependent factors determine the impact of R&D subsidies on firm behaviour with respect to private R&D expenditures. Based on German R&D survey data, we combine propensity score matching with a difference-in-difference estimator in order to measure the causal influence of public direct R&D project funding on firm behaviour. Our results indicate that (i) repeated participation in R&D projects on average leads to a higher increase in R&D expenditures than once-off funding; (ii) the aggregate effect of R&D funding on R&D expenditures of business firms is somewhat higher for business--business collaboration projects than for science--business collaboration projects; (iii) R&D expenditures of business firms that cooperate with science show a higher share of external R&D spending. Results of one particular cluster programme indicate that at least the short-term development of R&D does not so much depend on which programme direct R&D project funding is applied to.

Date: 2016
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Working Paper: Systemic aspects of R&D policy: Subsidies for R&D collaborations and their effects on private R&D (2015) Downloads
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DOI: 10.1080/13662716.2016.1146127

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