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Innovation procurement as capability-building: Evaluating innovation policies in eight Central and Eastern European countries

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  • Stojčić, Nebojša
  • Srhoj, Stjepan
  • Coad, Alex

Abstract

After decades of impressive growth, the new member states of the European Union are once again in transition, but this time from imitation to innovation-driven competitiveness. This paper evaluates the relationship between both public funding and public procurement for innovation (PPI) and firm-level innovation output and outcome additionality, in eight Central and Eastern European countries. Matching estimates on a sample of 41,623 firms suggest that PPI has a large effect on innovation and output, and the highest additionality is sometimes achieved when firms receive both financial support and innovation-oriented public procurement. We argue that policy-makers aiming to strengthen indigenous innovation capabilities should place stronger emphasis on PPI.

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  • Stojčić, Nebojša & Srhoj, Stjepan & Coad, Alex, 2020. "Innovation procurement as capability-building: Evaluating innovation policies in eight Central and Eastern European countries," European Economic Review, Elsevier, vol. 121(C).
    • Handle: RePEc:eee:eecrev:v:121:y:2020:i:c:s0014292119301904
    DOI: 10.1016/j.euroecorev.2019.103330
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    Keywords

    Public funding for innovation; Public procurement for innovation; Additionality; Evaluation; Central and Eastern European countries;
    All these keywords.

    JEL classification:

    • O38 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Government Policy

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