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Heterogeneous university funding programs and regional firm innovation

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  • Krieger, Bastian

Abstract

This paper estimates the effect of heterogeneous university funding programs within the German Excellence Initiative on a regional firm's probability to innovate by using a multi-valued two-way fixed effects difference-in-differences model. The estimations show that funding an additional Excellence Cluster focused on internationally competitive research within a labor market region increases a regional firm's probability to innovate. This effect is driven by firms within labor market regions receiving a high number of Excellence Clusters. There is no statistically significant effect for receiving a low number of Excellence Clusters. Moreover, we find no consistent statistically significant effect of funding Graduate Schools concentrating on training scientists nor of funding University Strategies promoting the overall long-term plan of a university.

Suggested Citation

  • Krieger, Bastian, 2024. "Heterogeneous university funding programs and regional firm innovation," Research Policy, Elsevier, vol. 53(5).
    • Handle: RePEc:eee:respol:v:53:y:2024:i:5:s0048733324000441
    DOI: 10.1016/j.respol.2024.104995
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    More about this item

    Keywords

    University funding; Firm innovation; Knowledge transfer;
    All these keywords.

    JEL classification:

    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • O38 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Government Policy

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