Using Innovation Survey Data to Evaluate R&amp;D Policy: The Case of Belgium

Aerts, Kris; Czarnitzki, Dirk

doi:10.2139/ssrn.572086

Cited by 56 publications

(50 citation statements)

References 39 publications

Supporting

Mentioning

Contrasting

Unclassified

Order By: Relevance

“…In the descriptive statistics no significant difference can be observed. A negative effect of a foreign parent company was found by Aerts and Czarnitzki (2004) for Belgium.…”

Section: Other Variablesmentioning

confidence: 99%

Who Gets the Money? The Dynamics of R&D Project Subsidies in Germany

Aschhoff

2008

SSRN Journal

View full text Add to dashboard Cite

Die Dis cus si on Pape rs die nen einer mög lichst schnel len Ver brei tung von neue ren For schungs arbei ten des ZEW. Die Bei trä ge lie gen in allei ni ger Ver ant wor tung der Auto ren und stel len nicht not wen di ger wei se die Mei nung des ZEW dar.Dis cus si on Papers are inten ded to make results of ZEW research prompt ly avai la ble to other eco no mists in order to encou ra ge dis cus si on and sug gesti ons for revi si ons. The aut hors are sole ly respon si ble for the con tents which do not neces sa ri ly repre sent the opi ni on of the ZEW.Download this ZEW Discussion Paper from our ftp server:ftp://ftp.zew.de/pub/zew-docs/dp/dp08018.pdf Non-Technical SummaryEach year over three thousand R&D projects in more than two thousand firms received public grants from the German Federal Government. However, the number of subsidized firms does not reveal, whether it is always the same group of companies that receive funding, or whether the beneficiaries change over time. Understanding the temporal structure of subsidy distribution could help future research explain the effects and effectiveness of subsidies. In the face of shrinking government budgets and intensified international competition in the field of technology, knowing and increasing the efficiency of innovation policies has become crucial.The focus is set on a specific public support scheme, the German Federal Government's non-defense R&D project funding scheme (DPF). This is the most important tool used by the German government to fund R&D in private businesses. In 2005, firms received over 700 million euros under this scheme. The importance of this funding scheme will increase in Germany in the coming years since it is the main distribution channel for the new High-Tech strategy launched by the Federal Government (BMBF, 2006b).The aim of this paper is to analyze the structure of the firms receiving R&D subsidies over time. In particular, I tackle the question of whether the same firms enjoy subsidies over time. There is still very little empirical evidence on the dynamics of firms' participation in public funding schemes. In order to investigate the persistence of funding it is necessary to distinguish between two types of persistence. One is simply due to the fact that funded projects may run for more than one calendar year. The other is due to newly approved projects. In the DPF scheme, approved projects last on average for about three years.The empirical part of this paper is based on an annual innovation survey, the German part of the Community Innovation Survey (CIS). This is merged with the DPF database in order to identify a firm's subsidy status in each year. The sample consists of over 6,000 different firms covering the manufacturing and knowledge-intensive service sectors over the time period from 1994 to 2004.Transition rates are calculated which describe the participation in the DPF scheme between two periods in a univariate context. The share of innovating firms which enter the funding scheme is extremely low. But if a firm has made ...

show abstract

“…In the descriptive statistics no significant difference can be observed. A negative effect of a foreign parent company was found by Aerts and Czarnitzki (2004) for Belgium.…”

Section: Other Variablesmentioning

confidence: 99%

Who Gets the Money? The Dynamics of R&D Project Subsidies in Germany

Aschhoff

2008

SSRN Journal

View full text Add to dashboard Cite

show abstract

“…If, however, they take the amount of subsidies into account, they conclude that subsidies induced a scarce additionality effect, which is inferior to the amount granted. Aerts and Czarnitzki (2004) address the additionality issue with the nearest neighbor matching technique on a cross-section of Flemish manufacturing and selected services companies, and find evidence that crowding-out can be rejected. Duguet (2004) employs the matching methodology with a large panel of French firms.…”

Section: Literature Reviewmentioning

confidence: 99%

Two for the Price of One? On Additionality Effects of R&D Subsidies: A Comparison between Flanders and Germany

2006

Self Cite

View full text Add to dashboard Cite

Die Dis cus si on Pape rs die nen einer mög lichst schnel len Ver brei tung von neue ren For schungs arbei ten des ZEW. Die Bei trä ge lie gen in allei ni ger Ver ant wor tung der Auto ren und stel len nicht not wen di ger wei se die Mei nung des ZEW dar.Dis cus si on Papers are inten ded to make results of ZEW research prompt ly avai la ble to other eco no mists in order to encou ra ge dis cus si on and sug gesti ons for revi si ons. The aut hors are sole ly respon si ble for the con tents which do not neces sa ri ly repre sent the opi ni on of the ZEW.Download this ZEW Discussion Paper from our ftp server:ftp://ftp.zew.de/pub/zew-docs/dp/dp06063.pdf Non-technical summarySchumpeter was the first to acknowledge the importance of continuous innovation in an economy. Especially against the background of the knowledge economy, innovation nowadays is deemed to be the main driving force of a country's competitive strength. Statistics show that there still is a big gap between the EU25 on the one hand and Japan and the US on the other hand when the R&D expenditure relative to the GDP is considered. As a result the European Commission very recently launched an integrated innovation/research action plan, which calls for a major upgrade of the research and innovation conditions in Europe. Mobilizing EU funds and instruments to support research and innovation is one of the objectives.Government intervention in the domain of private R&D activities is justified by the argument of market imperfection and has since long been common practice in most industrialized countries. R&D entails the non-excludability characteristic of a public good. Private investments in R&D can never be fully appropriated because other companies have the opportunity to free ride. This leads to underinvestment in R&D activities: the level of R&D expenditure will be below the socially desirable optimum. Public funding reduces the price of socially valuable R&D projects for private investors to a level at which it becomes profitable for companies to invest.The big challenge for governments obviously is to allocate public funding only to those projects that are socially beneficial and would not be carried out in the absence of a subsidy. This is however not straightforward as companies always have an incentive to apply for public funding. It might be the case that a subsidy merely replaces -or crowds out-private money and does not engender additional R&D investments.This paper provides empirical evidence on the relationship between public R&D funding and private R&D efforts in Flanders and Germany. Evaluation studies are inconclusive as some report crowding-out effects while others reject them. This is partly due to the fact that researchers use very different databases and econometric methods resulting from differences in information availability in different countries. Therefore it is useful to compare the impact of funding in different countries using similar methods and datasets.A comparison between Germany and Flanders seems to be a reasonable choic...

show abstract

“…Czarnitzki et al (2011), Duguet (2004 and Grossman et al (1994: 37-8) investment in R&D and innovation. 3 Duguet (2004: 272) for France, Aerts and Czarnitzki (2004: 16) for Belgium and Czarnitzki and Fier (2002: 17-8)-18) as well as Lehmann and Stierwald (2004: 128) for Germany show the additionality of public innovation support. Furthermore, Busom (2000: 133) for Spain and Görg and Strobl (2007: 17)) for Ireland stress that crowdingout can be ruled out at least for several companies -e.g.…”

Section: Tekes Is the Innovation Support Agency In Finland (Tekniikanmentioning

confidence: 97%

Effectiveness of Public Innovation Support in Europe. Does Public Support Foster Turnover, Employment and Labour Productivity?

Becker

2015

SSRN Journal

View full text Add to dashboard Cite

Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. With these three factors, this paper expands the analysis of effectiveness of public innovation support, evaluating the supported companies regarding competitiveness in Europe. Terms of use: Documents in EconStor mayAn overview on the existing landscape of public innovation support within the EU is provided in the first part of section two, which shows that the vast majority of twenty European countries offer either subsidies or tax cuts and subsidies for private R&D investment. Nonetheless, in terms of those countries using both instruments simultaneously, differences in the relation become visible (see Busom et al. 2012: 38).3 Additionality of public innovation support in EuropeCzarnitzki et al. ( ), Duguet (2004 and Grossman et al. (1994: 37-8) Busom (2000: 133) for Spain and Görg and Strobl (2007: 17)) for Ireland stress that crowdingout can be ruled out at least for several companies -e.g. domestic firms that received small grants in Ireland -while these two studies do not completely rule out crowding-out. Krohmer's (2010: 51) meta-analysis of 57 studies focusing on R&D support in Germany also shows no general crowding-out of private investments. Thus, this paper assumes at least partial additionality and at most partial crowding-out in the EU. A recent study by Radicic and Pugh (2013: 18) shows that public institutions face a selection problem, which reduces the positive effect of public innovation support. Public institutions have a tendency towards a 'picking the winner' strategy to evade information problems about the firms applying for innovation support, as Cantner and Kösters (2012: 932-3) outline. These factors reduce additionality and thus lead to a greater degree of crowding-out.Nonetheless, regarding additionality, the empirical results in Europe present a clear picture that public innovation support induces additional private innovative activities and crowding-out is at least not a general problem.3 Despite not always being synonymously used, for this study R&D spending and innovation spending can be while he highlights a positive effect at the industry level, the observations of one period had to be removed as outliers before finding a positive effect.SMEs particularly benefit from industry-specific R&D support (Maliranta 2000a: 117). Job creation is only supported for private R&D, while the effect for publicly-financed R&D is 'ambiguous ' (Maliranta 2000a: 117). A recent paper by Pajarinen and Rouvinen (2014) 4 summarizes that ...

show abstract

Using Innovation Survey Data to Evaluate R&D Policy: The Case of Belgium

Cited by 56 publications

References 39 publications

Who Gets the Money? The Dynamics of R&D Project Subsidies in Germany

Who Gets the Money? The Dynamics of R&D Project Subsidies in Germany

Two for the Price of One? On Additionality Effects of R&D Subsidies: A Comparison between Flanders and Germany

Effectiveness of Public Innovation Support in Europe. Does Public Support Foster Turnover, Employment and Labour Productivity?

Contact Info

Product

Resources

About