Contests for Cooperation: A New Approach in German Innovation Policy

Alexander Eickelpasch and Michael Fritsch ()

No 478, Discussion Papers of DIW Berlin from DIW Berlin, German Institute for Economic Research

Abstract: A new approach in German innovation policy organizes contests of proposals for developing innovation networks. Based on an overview of the different programs, we investigate the advantages, problems and limitations of such an approach. We find that this type of policy may have a relatively large impact and can, therefore, be regarded as a rather efficient instrument of innovation policy. Compared to conventional policies, administration of the program is a much more critical issue. The contest approach may stimulate learning effects on the side of the administration but may also require a high degree of flexibility. The main disadvantage is the additional time that is required for conducting the contest. As a distinct 'picking the winner' approach, the contest approach is not suited as a means for achieving a leveling-out of regional welfare levels.

Keywords: Innovation policy; Regional competition; Innovation networks (search for similar items in EconPapers)
JEL-codes: H32 O18 O38 R11 (search for similar items in EconPapers)
Pages: 22 p.
Date: 2005
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Citations: View citations in EconPapers (69)

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Related works:
Journal Article: Contests for cooperation--A new approach in German innovation policy (2005)
Working Paper: Contests for Cooperation: A New Approach in German Innovation Policy (2005)
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