Detecting Behavioural Additionality: An Empirical Study on the Impact of Public R&D Funding on Firms' Cooperative Behaviour in Germany

Andreas Fier, Birgit Aschhoff and Heide Löhlein

ZEW Discussion Papers from ZEW - Leibniz Centre for European Economic Research

Abstract: Subsidising research networks has become a popular instrument in technology policies, driven mainly by expected positive spillovers. In particular, the stimulation of R&D co-operation between scientific institutions and industry is considered as most promising. In the context of policy evaluation we analyse if public R&D funding is suitable for influencing firms' collaborative behaviour in the intended way and where applicable, if a lasting change results. The empirical analysis is based on German CIS data and a supplemental telephone survey. Using a nearest-neighbour matching approach we find that R&D funding is indeed a particularly valuable tool for linking science into industry R&D partnerships. However, we also show in a bivariate probit analysis that newly initiated R&D co-operations with science are less likely to be continued after funding has ended compared to already existing cooperations. Therefore, the behavioural change induced by public funding is not necessarily long-lived.

Keywords: Public Funding; Firm Behaviour; Policy Evaluation; R&D Co-operation (search for similar items in EconPapers)
JEL-codes: H25 L24 O38 (search for similar items in EconPapers)
Date: 2007
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Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:zbw:zewdip:7190

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