Local R&D support as a driver of network diversification? A comparative evaluation of innovation policies in neighboring prefectures in Japan

Keisuke Takano and Hiroyuki Okamuro

No E-2019-02, TDB-CAREE Discussion Paper Series from Teikoku Databank Center for Advanced Empirical Research on Enterprise and Economy, Graduate School of Economics, Hitotsubashi University

Abstract: This paper compares the effects of local R&D support programs on firm performance between neighboring three prefectures in the same district in Japan. Particularly, we evaluate the policy effect on regional and sectoral diversification of transaction networks. One of these prefectures, A, has a large industrial agglomeration around world-leading manufacturers, which is not the case for the other prefectures, B and C. Empirical evaluation based on firm-level dataset available through TDB-CAREE shows that the programs in Prefectures B and C promoted market development of recipient firms in unexplored sectors or regions, whereas Prefecture A’s program did not.

Keywords: place-based policy; R&D support; interregional trade; diversification (search for similar items in EconPapers)
JEL-codes: L25 L52 O38 R11 R12 R58 (search for similar items in EconPapers)
Pages: 53 pages
Date: 2019-10
New Economics Papers: this item is included in nep-geo, nep-sbm, nep-tid and nep-ure
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Persistent link: https://EconPapers.repec.org/RePEc:hit:tdbcdp:e-2019-02

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