Public Funding and Corporate Innovation

Mathias Beck, Martin Junge, Ulrich Kaiser

    Research output: Working paperResearch

    Abstract

    We review and condense the body of literature on the economic returns of public R&D on private R&D and find that: (i) private returns to R&D appear to be large and larger than the returns to alternative investments; (ii) private R&D and R&D subsidies are positively correlated and there is no evidence for crowding out; (iii) R&D cooperation increases private R&D; (iv) there appear to exist complementarities between alternative sources of funding; (v) the mobility of R&D workers, particularly of university scientists, is positively related to innovation; (vi) there are many university spin-offs but these are no more successful than non-university spin-offs; (vii) universities constitute important collaboration partners and (viii) clusters enhance collaboration, patents and productivity. Key problems for economic policy advice are that the identification of causal effects is problematic in most studies and that little is known about the optimal design of policy measures.
    Original languageEnglish
    Place of PublicationBonn
    PublisherIZA
    Number of pages45
    Publication statusPublished - Dec 2017
    SeriesIZA Discussion Paper
    Number11196

    Keywords

    • R&D subsidies
    • R&D tax credits
    • Cooperation
    • Labor mobility
    • Returns to R&D
    • University spin-offs
    • R&D clusters
    • Public-private knowledge transfer

    Cite this

    Beck, M., Junge, M., & Kaiser, U. (2017). Public Funding and Corporate Innovation. Bonn: IZA. IZA Discussion Paper, No. 11196
    Beck, Mathias ; Junge, Martin ; Kaiser, Ulrich. / Public Funding and Corporate Innovation. Bonn : IZA, 2017. (IZA Discussion Paper; No. 11196).
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    Beck, M, Junge, M & Kaiser, U 2017 'Public Funding and Corporate Innovation' IZA, Bonn.

    Public Funding and Corporate Innovation. / Beck, Mathias; Junge, Martin; Kaiser, Ulrich.

    Bonn : IZA, 2017.

    Research output: Working paperResearch

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    AB - We review and condense the body of literature on the economic returns of public R&D on private R&D and find that: (i) private returns to R&D appear to be large and larger than the returns to alternative investments; (ii) private R&D and R&D subsidies are positively correlated and there is no evidence for crowding out; (iii) R&D cooperation increases private R&D; (iv) there appear to exist complementarities between alternative sources of funding; (v) the mobility of R&D workers, particularly of university scientists, is positively related to innovation; (vi) there are many university spin-offs but these are no more successful than non-university spin-offs; (vii) universities constitute important collaboration partners and (viii) clusters enhance collaboration, patents and productivity. Key problems for economic policy advice are that the identification of causal effects is problematic in most studies and that little is known about the optimal design of policy measures.

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    Beck M, Junge M, Kaiser U. Public Funding and Corporate Innovation. Bonn: IZA. 2017 Dec.