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Do Cooperative Research and Development (R&D) Subsidies Stimulate Regional Innovation Efficiency? Evidence from Germany

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  • Tom Broekel

Abstract

B roekel T. Do cooperative research and development (R&D) subsidies stimulate regional innovation efficiency? Evidence from Germany, Regional Studies . The subsidization of research and development (R&D) and R&D cooperation has gained in importance in recent years. Building on a rich panel dataset, covering 270 German labour market regions and four industries, it is shown that subsidies for R&D cooperation are a suitable policy measure for stimulating the innovation efficiency of regions. The empirical findings suggest that regions with low innovation capacities benefit the most from cooperation among regional firms and subsidized links to non-regional public research institutes. The subsidization of cooperation with non-regional universities is more important for regions with large innovation capacities. Support for non-cooperative projects is related to negative effects.

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  • Tom Broekel, 2015. "Do Cooperative Research and Development (R&D) Subsidies Stimulate Regional Innovation Efficiency? Evidence from Germany," Regional Studies, Taylor & Francis Journals, vol. 49(7), pages 1087-1110, July.
    • Handle: RePEc:taf:regstd:v:49:y:2015:i:7:p:1087-1110
    DOI: 10.1080/00343404.2013.812781
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    1. David C. Wheelock & Paul W. Wilson, 2003. "Robust nonparametric estimation of efficiency and technical change in U.S. commercial banking," Working Papers 2003-037, Federal Reserve Bank of St. Louis.
    2. Tom Broekel & Matthias Buerger & Thomas Brenner, 2010. "An investigation of the relation between cooperation and the innovative success of German regions," Papers in Evolutionary Economic Geography (PEEG) 1011, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Oct 2010.
    3. Tom Broekel, 2007. "A Concordance between Industries and Technologies Matching the technological fields of the Patentatlas to the German Industry Classification," Jena Economics Research Papers 2007-041, Friedrich-Schiller-University Jena.
    4. Tom Broekel & Thomas Brenner, 2007. "Measuring Regional Innovativeness - A Methodological Discussion and an Application to One German Industry," Jena Economics Research Papers 2007-065, Friedrich-Schiller-University Jena.
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