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Author: Reda Cherif
Publisher: International Monetary Fund
ISBN:
Category : Business & Economics
Languages : en
Pages : 41
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Book Description
We investigate the effect of R&D subsidies on firms’ innovation by ownership, industry, and firm size using German firm-level data. The impact of R&D subsidies is heterogeneous across industries for multinational corporations (MNCs) and domestic firms while it does not differ substantially by firm size. Domestic firms have a larger response in R&D spending in low-tech manufacturing, knowledge-intensive services, and technological services while the response of domestic and foreign MNCs is broadly similar and is greater in medium-tech and high-tech manufacturing. Foreign MNC subsidiaries’ response in terms of patents is greater than that of domestic MNCs in most industries.
Author: Reda Cherif
Publisher: International Monetary Fund
ISBN:
Category : Business & Economics
Languages : en
Pages : 41
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Book Description
We investigate the effect of R&D subsidies on firms’ innovation by ownership, industry, and firm size using German firm-level data. The impact of R&D subsidies is heterogeneous across industries for multinational corporations (MNCs) and domestic firms while it does not differ substantially by firm size. Domestic firms have a larger response in R&D spending in low-tech manufacturing, knowledge-intensive services, and technological services while the response of domestic and foreign MNCs is broadly similar and is greater in medium-tech and high-tech manufacturing. Foreign MNC subsidiaries’ response in terms of patents is greater than that of domestic MNCs in most industries.
Author: Adam B. Jaffe
Publisher:
ISBN:
Category : Business enterprises
Languages : en
Pages : 34
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Book Description
This paper examines the impact of government assistance through R & D grants on innovation output for firms in New Zealand. Using a large database that links administrative and tax data with survey data, we are able to control for large number of firm characteristics and thus minimise selection bias. We find that receipt of an R & D grant significantly increases the probability that a firm in the manufacturing and service sectors applies for a patent during 2005-2009, but no positive impact is found on the probability of applying for a trademark. Using only firms that participated in the Business Operation Survey, we find that receiving a grant almost doubles the probability that a firm introduces new goods and services to the world while its effects on process innovation and any product innovation are relatively much weaker. Moreover, there is little evidence that grant receipt has differential effects between small to medium (
Author: David Horan
Publisher:
ISBN:
Category : Knowledge management
Languages : en
Pages : 79
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Book Description
The first chapter studies how government should allocate R&D subsidies when firms interact through their R&D decisions. In practice, public agencies often distribute funding on a case-by-case (CbC) basis ignoring indirect effects that may arise due to firm interaction. The paper finds that when complementary knowledge spillovers occur among firms receiving support to research on independent products, knowledge spillovers induce complementary R&D interactions and CbC funding is socially excessive. By contrast, when no knowledge spillovers occur among firms receiving support to research on substitute products, product market rivalry induces substitutive R&D interactions and CbC funding is socially insufficient. An adjusted CbC rule is then proposed which corrects the inefficiency in CbC funding arising from a general pattern of bilateral influences. The second chapter presents a model of the agglomeration of an oligopolistic industry to study the effect of cluster size on firm performance and firms' incentives to cluster. The model captures a distinctive feature of agglomeration among firms which produce close substitutes: the interaction of agglomeration externalities and negative pecuniary externalities. The paper finds that i) the performance of cluster firms exhibits a rise-and-fall pattern with respect to cluster size; ii) neither complete agglomeration nor complete dispersion of firms is socially desirable; and iii) firms'unilateral incentives drive them to agglomerate completely. This suggests that the private incentives to agglomerate of competing firms may be socially excessive. The paper also compares the performance of cluster and isolated firms, which is relavent for situations where geography or government constrains firms'location decisions. The third chapter develops a model to study how government should subsidize investment, e.g. R&D, when firms are located in clusters and agglomeration externalities are present, e.g. local knowledge spillovers. The analysis focuses on industry spatial patterns characterized by a single core and peripheral cluster. The paper finds that asymmetries between core and peripheral cluster sizes create differential subsidy effects: i) the additionality effect of a subsidy on cluster firm investment is relatively stronger for a peripheral firm subsidy (expansion effect); and ii) the crowding-out effect of a subsidy on non-cluster firm investment is relatively stronger for a core firm subsidy (sitting-duck effect). We find the sitting-duck effect dominates the expansion effect. The main policy implication is that if government is justified in funding both core and peripheral firms then alongside core firm subsidies, government must provide adequate funding to peripheral firms to counteract the sitting-duck effect. The paper also finds that case-by-case subsidization is biased towards favouring firms in the core cluster.
Author: Martin Hud
Publisher:
ISBN:
Category :
Languages : en
Pages : 34
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Book Description
Author: Niclas Rüffer
Publisher: BoD – Books on Demand
ISBN: 3844104054
Category : Business & Economics
Languages : en
Pages : 318
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Book Description
R&D and innovation policy is high on the political agenda in advanced economies. Market and system failures have been identified as reasons for private underinvestment in R&D and innovation and several policy instruments are in use to mitigate these failures. One central instrument of innovation policy are direct subsidies for firm R&D. By using direct project funding governments have the chance to target projects with high social returns and therefore, in theory, i. e. if policy makers can identify projects with high social returns, direct project funding can be an effective instrument to foster private sector R&D. However, there is no straightforward mechanism guaranteeing that subsidies are applied to projects which suffer from market or system failures. The allocation process of subsidies therefore appears to be central to the question of the effectiveness of subsidies. In spite of increasing scientific interest in innovation promotion policy, analysing allocation processes has been widely neglected in the mainstream literature. However, given the potential distortions which allocation processes can have it is worth addressing this issue in depth. This dissertation analyzes the allocation of R&D subsidies to firms theoretically and empirically using a unique data set from a special subsidy program from south-western Germany. Thereby this dissertation contributes to the growing literature on innovation promotion and is of interest for innovation researchers and innovation policy makers alike.
Author: Jakob Edler
Publisher: Edward Elgar Publishing
ISBN: 1784711853
Category : Business & Economics
Languages : en
Pages : 604
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Book Description
Innovation underpins competitiveness, is crucial to addressing societal challenges, and its support has become a major public policy goal. But what really works in innovation policy, and why? This Handbook, compiled by leading experts in the field, is the first comprehensive guide to understanding the logic and effects of innovation polices. The Handbook develops a conceptualisation and typology of innovation policies, presents meta-evaluations for 16 key innovation policy instruments and analyses evidence on policy-mix. For each policy instrument, underlying rationales and examples are presented, along with a critical analysis of the available impact evidence. Providing access to primary sources of impact analysis, the book offers an insightful assessment of innovation policy practice and its evaluation.
Author: Raffaello Bronzini
Publisher:
ISBN:
Category :
Languages : en
Pages : 42
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Author: Ralph Siebert
Publisher:
ISBN:
Category :
Languages : en
Pages :
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Author: Matthias Almus
Publisher:
ISBN:
Category :
Languages : en
Pages :
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Author:
Publisher:
ISBN:
Category :
Languages : en
Pages : 27
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