Long-Run Effects of Public–Private Research Joint Ventures

The Case of the Danish Innovation Consortia Support Scheme

Ulrich Kaiser, Johan Moritz Kuhn

Research output: Contribution to journalJournal articleResearchpeer-review

Abstract

Subsidized research joint ventures (RJVs) between public research institutions and industry have become increasingly popular in Europe and the US. We study the long-run effects of such a support scheme that has been maintained by the Danish government since 1995. To cope with identification problems we apply nearest neighbor matching and conditional difference-in-difference estimation methods. Our main findings are that (i) program participation effects are instant for annual patent applications and last for three years, (ii) employment effects materialize first after one year and (iii) there are no statistically significant effects on value added or labor productivity. We further show that these overall results are primarily driven by firms that were patent active prior to joining the RJV and that there are no statistically significant effects for large firms. The insignificant results we document for large firms coupled with the fact that these type of firms are over-represented in many support programs, including the one considered here, leads us to suggest a rethinking of support policies that often aim at large firms.
Original languageEnglish
JournalResearch Policy
Volume41
Issue number5
Pages (from-to)913-927
Number of pages15
ISSN0048-7333
DOIs
Publication statusPublished - 2012

Keywords

  • Public-private Partnership
  • Research Joint Venture
  • Research and Development
  • Research Subsidies

Cite this

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title = "Long-Run Effects of Public–Private Research Joint Ventures: The Case of the Danish Innovation Consortia Support Scheme",
abstract = "Subsidized research joint ventures (RJVs) between public research institutions and industry have become increasingly popular in Europe and the US. We study the long-run effects of such a support scheme that has been maintained by the Danish government since 1995. To cope with identification problems we apply nearest neighbor matching and conditional difference-in-difference estimation methods. Our main findings are that (i) program participation effects are instant for annual patent applications and last for three years, (ii) employment effects materialize first after one year and (iii) there are no statistically significant effects on value added or labor productivity. We further show that these overall results are primarily driven by firms that were patent active prior to joining the RJV and that there are no statistically significant effects for large firms. The insignificant results we document for large firms coupled with the fact that these type of firms are over-represented in many support programs, including the one considered here, leads us to suggest a rethinking of support policies that often aim at large firms.",
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Long-Run Effects of Public–Private Research Joint Ventures : The Case of the Danish Innovation Consortia Support Scheme. / Kaiser, Ulrich; Kuhn, Johan Moritz.

In: Research Policy, Vol. 41, No. 5, 2012, p. 913-927.

Research output: Contribution to journalJournal articleResearchpeer-review

TY - JOUR

T1 - Long-Run Effects of Public–Private Research Joint Ventures

T2 - The Case of the Danish Innovation Consortia Support Scheme

AU - Kaiser, Ulrich

AU - Kuhn, Johan Moritz

PY - 2012

Y1 - 2012

N2 - Subsidized research joint ventures (RJVs) between public research institutions and industry have become increasingly popular in Europe and the US. We study the long-run effects of such a support scheme that has been maintained by the Danish government since 1995. To cope with identification problems we apply nearest neighbor matching and conditional difference-in-difference estimation methods. Our main findings are that (i) program participation effects are instant for annual patent applications and last for three years, (ii) employment effects materialize first after one year and (iii) there are no statistically significant effects on value added or labor productivity. We further show that these overall results are primarily driven by firms that were patent active prior to joining the RJV and that there are no statistically significant effects for large firms. The insignificant results we document for large firms coupled with the fact that these type of firms are over-represented in many support programs, including the one considered here, leads us to suggest a rethinking of support policies that often aim at large firms.

AB - Subsidized research joint ventures (RJVs) between public research institutions and industry have become increasingly popular in Europe and the US. We study the long-run effects of such a support scheme that has been maintained by the Danish government since 1995. To cope with identification problems we apply nearest neighbor matching and conditional difference-in-difference estimation methods. Our main findings are that (i) program participation effects are instant for annual patent applications and last for three years, (ii) employment effects materialize first after one year and (iii) there are no statistically significant effects on value added or labor productivity. We further show that these overall results are primarily driven by firms that were patent active prior to joining the RJV and that there are no statistically significant effects for large firms. The insignificant results we document for large firms coupled with the fact that these type of firms are over-represented in many support programs, including the one considered here, leads us to suggest a rethinking of support policies that often aim at large firms.

KW - Public-private Partnership

KW - Research Joint Venture

KW - Research and Development

KW - Research Subsidies

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