Does Cluster Policy Trigger R&D Activity? – Evidence from German Biotech Contests

Dirk Engel, Timo Mitze, Roberto Patuelli, Janina Reinkowski

Publikation: Bog/antologi/afhandling/rapportRapportForskningpeer review

Resumé

This paper evaluates the R&D enhancing effects of two large public grant schemes for the German biotechnology industry (BioRegio, BioProfi le). Both grant schemes are organized in the form of contents for cooperation with the goal to foster the performance of innovative firms by their organization in research clusters. We apply a Difference-in-Differences estimation technique in a generalized linear model framework, which allows us to control for different initial regional conditions in R&D activity of the biotech sector. Our econometric findings support the view that winners generally outperform non-winning participants during the treatment period, thus indicating that exclusive funding as well as the stimulating effect of being a “winner” have positive effects on R&D activity in the short-term. Apart from this direct winner effect, for the non-winning participants no beneficial indirect effect due to a mobilization of local actors during the application phase could be detected. Finally, first attempts in estimating the long-term effects of the contests for cooperation approach on the winner regions’ R&D activity in the post-treatment period show ambiguous results.

Fingeraftryk

Biotech
Trigger
Contests
Funding
Difference-in-differences
Indirect effects
Generalized linear model
Econometrics
Mobilization
Biotechnology industry

Citer dette

Engel, D., Mitze, T., Patuelli, R., & Reinkowski, J. (2012). Does Cluster Policy Trigger R&D Activity? – Evidence from German Biotech Contests. Rheinisch-Westfälisches Institut für Wirtschaftsforschung, Ruhr-Universität Bochum, Universität Dortmund, Universität Duisburg-Essen.
Engel, Dirk ; Mitze, Timo ; Patuelli, Roberto ; Reinkowski, Janina. / Does Cluster Policy Trigger R&D Activity? – Evidence from German Biotech Contests. Rheinisch-Westfälisches Institut für Wirtschaftsforschung, Ruhr-Universität Bochum, Universität Dortmund, Universität Duisburg-Essen, 2012.
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abstract = "This paper evaluates the R&D enhancing effects of two large public grant schemes for the German biotechnology industry (BioRegio, BioProfi le). Both grant schemes are organized in the form of contents for cooperation with the goal to foster the performance of innovative firms by their organization in research clusters. We apply a Difference-in-Differences estimation technique in a generalized linear model framework, which allows us to control for different initial regional conditions in R&D activity of the biotech sector. Our econometric findings support the view that winners generally outperform non-winning participants during the treatment period, thus indicating that exclusive funding as well as the stimulating effect of being a “winner” have positive effects on R&D activity in the short-term. Apart from this direct winner effect, for the non-winning participants no beneficial indirect effect due to a mobilization of local actors during the application phase could be detected. Finally, first attempts in estimating the long-term effects of the contests for cooperation approach on the winner regions’ R&D activity in the post-treatment period show ambiguous results.",
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Engel, D, Mitze, T, Patuelli, R & Reinkowski, J 2012, Does Cluster Policy Trigger R&D Activity? – Evidence from German Biotech Contests. Rheinisch-Westfälisches Institut für Wirtschaftsforschung, Ruhr-Universität Bochum, Universität Dortmund, Universität Duisburg-Essen.

Does Cluster Policy Trigger R&D Activity? – Evidence from German Biotech Contests. / Engel, Dirk; Mitze, Timo; Patuelli, Roberto; Reinkowski, Janina.

Rheinisch-Westfälisches Institut für Wirtschaftsforschung, Ruhr-Universität Bochum, Universität Dortmund, Universität Duisburg-Essen, 2012.

Publikation: Bog/antologi/afhandling/rapportRapportForskningpeer review

TY - RPRT

T1 - Does Cluster Policy Trigger R&D Activity? – Evidence from German Biotech Contests

AU - Engel, Dirk

AU - Mitze, Timo

AU - Patuelli, Roberto

AU - Reinkowski, Janina

PY - 2012

Y1 - 2012

N2 - This paper evaluates the R&D enhancing effects of two large public grant schemes for the German biotechnology industry (BioRegio, BioProfi le). Both grant schemes are organized in the form of contents for cooperation with the goal to foster the performance of innovative firms by their organization in research clusters. We apply a Difference-in-Differences estimation technique in a generalized linear model framework, which allows us to control for different initial regional conditions in R&D activity of the biotech sector. Our econometric findings support the view that winners generally outperform non-winning participants during the treatment period, thus indicating that exclusive funding as well as the stimulating effect of being a “winner” have positive effects on R&D activity in the short-term. Apart from this direct winner effect, for the non-winning participants no beneficial indirect effect due to a mobilization of local actors during the application phase could be detected. Finally, first attempts in estimating the long-term effects of the contests for cooperation approach on the winner regions’ R&D activity in the post-treatment period show ambiguous results.

AB - This paper evaluates the R&D enhancing effects of two large public grant schemes for the German biotechnology industry (BioRegio, BioProfi le). Both grant schemes are organized in the form of contents for cooperation with the goal to foster the performance of innovative firms by their organization in research clusters. We apply a Difference-in-Differences estimation technique in a generalized linear model framework, which allows us to control for different initial regional conditions in R&D activity of the biotech sector. Our econometric findings support the view that winners generally outperform non-winning participants during the treatment period, thus indicating that exclusive funding as well as the stimulating effect of being a “winner” have positive effects on R&D activity in the short-term. Apart from this direct winner effect, for the non-winning participants no beneficial indirect effect due to a mobilization of local actors during the application phase could be detected. Finally, first attempts in estimating the long-term effects of the contests for cooperation approach on the winner regions’ R&D activity in the post-treatment period show ambiguous results.

KW - Biotechnology

KW - R&D policies

KW - cluster

KW - difference-in-differences estimation

M3 - Report

BT - Does Cluster Policy Trigger R&D Activity? – Evidence from German Biotech Contests

PB - Rheinisch-Westfälisches Institut für Wirtschaftsforschung, Ruhr-Universität Bochum, Universität Dortmund, Universität Duisburg-Essen

ER -

Engel D, Mitze T, Patuelli R, Reinkowski J. Does Cluster Policy Trigger R&D Activity? – Evidence from German Biotech Contests. Rheinisch-Westfälisches Institut für Wirtschaftsforschung, Ruhr-Universität Bochum, Universität Dortmund, Universität Duisburg-Essen, 2012.