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Assessing changes in EU innovation policy programs: from SME instrument to EIC accelerator for start-up funding

Author

Listed:
  • Maria del Sorbo

    (European Innovation Council, Bruxelles, Belgium)

  • Carina Faber

    (European Innovation Council, Bruxelles, Belgium)

  • Marco Grazzi

    (Dipartimento di Politica Economica, DISCE, Università Cattolica del Sacro Cuore, Milano, Italy)

  • Francesco Matteucci

    (European Innovation Council, Bruxelles, Belgium)

  • Miriam Ruß

    (Wuppertal Institut für Klima, Umwelt, Energie gGmbH, Wuppertal, Germany)

Abstract

A novel analysis of the European Innovation Council (EIC) Accelerator pilot is presented, marking the first extensive examination of its selection process and the impact of its funding on deep tech ventures, in comparison to its predecessor, the SME Instrument. Utilizing applicant data from both programs, the study assesses the EIC’s effectiveness in targeting firms that align with its objectives of driving breakthrough innovation. The research reveals that the EIC Accelerator pilot attracts younger and smaller firms, in comparison to its predecessor. A significantly higher proportion of applicants are high tech and medium high-tech, indicating a strategic shift towards supporting cutting-edge technologies. Despite this shift, the analysis of funding determinants demonstrates a consistent pattern across both programs, emphasizing the influence of firm size, age, and patent portfolio. Further, a regression discontinuity design analysis is used to estimate the impact of funding during the EIC accelerator pilot on firm-level outcomes, such as patenting, revenue, or employment growth. However, the very recent launch of the program shrinks both the observations and the ex-post window, and due to large standard errors the point estimates are not significant at conventional levels.

Suggested Citation

  • Maria del Sorbo & Carina Faber & Marco Grazzi & Francesco Matteucci & Miriam Ruß, 2024. "Assessing changes in EU innovation policy programs: from SME instrument to EIC accelerator for start-up funding," DISCE - Quaderni del Dipartimento di Politica Economica dipe0037, Università Cattolica del Sacro Cuore, Dipartimenti e Istituti di Scienze Economiche (DISCE).
    • Handle: RePEc:ctc:serie5:dipe0037
    as

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    File URL: http://dipartimenti.unicatt.it/politica-economica-DIPE0037.pdf
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    References listed on IDEAS

    as
    1. Nicholas Bloom & John Van Reenen & Heidi Williams, 2019. "A toolkit of policies to promote innovation," Voprosy Ekonomiki, NP Voprosy Ekonomiki, issue 10.
    2. Hahn, Jinyong & Todd, Petra & Van der Klaauw, Wilbert, 2001. "Identification and Estimation of Treatment Effects with a Regression-Discontinuity Design," Econometrica, Econometric Society, vol. 69(1), pages 201-209, January.
    3. van den Heuvel, Matthias & Popp, David, 2023. "The role of venture capital and governments in clean energy: lessons from the first cleantech bubble," Energy Economics, Elsevier, vol. 124(C).
    4. Alonso Rodríguez-Navarro & Francis Narin, 2018. "European Paradox or Delusion—Are European Science and Economy Outdated?," Science and Public Policy, Oxford University Press, vol. 45(1), pages 14-23.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Innovation Policy; Industrial policy; deep-tech; start-up; regression discontinuity; patent; firm growth;
    All these keywords.

    JEL classification:

    • O3 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D
    • O38 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Government Policy
    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship

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