IDEAS home Printed from https://ideas.repec.org/p/zbw/zewdip/23006.html
   My bibliography  Save this paper

Heterogeneous regional university funding and firm innovation: An empirical analysis of the German excellence initiative

Author

Listed:
  • Krieger, Bastian

Abstract

This paper estimates the effect of heterogeneous university funding stemming from 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 between 0.3 and 0.9 percentage points. 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, 2023. "Heterogeneous regional university funding and firm innovation: An empirical analysis of the German excellence initiative," ZEW Discussion Papers 23-006, ZEW - Leibniz Centre for European Economic Research.
    • Handle: RePEc:zbw:zewdip:23006
    as

    Download full text from publisher

    File URL: https://www.econstor.eu/bitstream/10419/270441/1/1839692766.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Tobias Schlegel & Curdin Pfister & Uschi Backes-Gellner, 2022. "Tertiary education expansion and regional firm development," Regional Studies, Taylor & Francis Journals, vol. 56(11), pages 1874-1887, November.
    2. Valero, Anna & Van Reenen, John, 2019. "The economic impact of universities: Evidence from across the globe," Economics of Education Review, Elsevier, vol. 68(C), pages 53-67.
    3. Pfister, Curdin & Koomen, Miriam & Harhoff, Dietmar & Backes-Gellner, Uschi, 2021. "Regional innovation effects of applied research institutions," Research Policy, Elsevier, vol. 50(4).
    4. Tommaso Agasisti & Cristian Barra & Roberto Zotti, 2019. "Research, knowledge transfer, and innovation: The effect of Italian universities’ efficiency on local economic development 2006−2012," Journal of Regional Science, Wiley Blackwell, vol. 59(5), pages 819-849, November.
    5. A. Bellucci & L. Pennacchio, 2016. "University knowledge and firm innovation: evidence from European countries," The Journal of Technology Transfer, Springer, vol. 41(4), pages 730-752, August.
    6. Tobias Schlegel & Curdin Pfister & Dietmar Harhoff & Uschi Backes-Gellner, 2022. "Innovation effects of universities of applied sciences: an assessment of regional heterogeneity," The Journal of Technology Transfer, Springer, vol. 47(1), pages 63-118, February.
    7. Atta-Owusu, Kwadwo & Fitjar, Rune Dahl & Rodríguez-Pose, Andrés, 2021. "What drives university-industry collaboration? Research excellence or firm collaboration strategy?," Technological Forecasting and Social Change, Elsevier, vol. 173(C).
    8. Mira Fischer & Patrick Kampkötter, 2017. "Effects of German Universities' Excellence Initiative on Ability Sorting of Students and Perceptions of Educational Quality," Journal of Institutional and Theoretical Economics (JITE), Mohr Siebeck, Tübingen, vol. 173(4), pages 662-687, December.
    9. Kyui, Natalia, 2016. "Expansion of higher education, employment and wages: Evidence from the Russian Transition," Labour Economics, Elsevier, vol. 39(C), pages 68-87.
    10. Daniel A Kamhöfer & Hendrik Schmitz & Matthias Westphal, 2019. "Heterogeneity in Marginal Non-Monetary Returns to Higher Education," Journal of the European Economic Association, European Economic Association, vol. 17(1), pages 205-244.
    11. Cowan, Robin & Zinovyeva, Natalia, 2013. "University effects on regional innovation," Research Policy, Elsevier, vol. 42(3), pages 788-800.
    12. Otto Toivanen & Lotta Väänänen, 2016. "Education and Invention," The Review of Economics and Statistics, MIT Press, vol. 98(2), pages 382-396, May.
    13. Matthias Menter & Erik E. Lehmann & Torben Klarl, 2018. "In search of excellence: a case study of the first excellence initiative of Germany," Journal of Business Economics, Springer, vol. 88(9), pages 1105-1132, December.
    14. James A. Cunningham & Matthias Menter, 2021. "Transformative change in higher education: entrepreneurial universities and high-technology entrepreneurship," Industry and Innovation, Taylor & Francis Journals, vol. 28(3), pages 343-364, March.
    15. Torben Schubert & Henning Kroll, 2016. "Universities’ effects on regional GDP and unemployment: The case of Germany," Papers in Regional Science, Wiley Blackwell, vol. 95(3), pages 467-489, August.
    16. Lehnert, Patrick & Pfister, Curdin & Backes-Gellner, Uschi, 2020. "Employment of R&D personnel after an educational supply shock: Effects of the introduction of Universities of Applied Sciences in Switzerland," Labour Economics, Elsevier, vol. 66(C).
    17. Leten, Bart & Landoni, Paolo & Van Looy, Bart, 2014. "Science or graduates: How do firms benefit from the proximity of universities?," Research Policy, Elsevier, vol. 43(8), pages 1398-1412.
    18. Buenstorf, Guido & Koenig, Johannes, 2020. "Interrelated funding streams in a multi-funder university system: Evidence from the German Exzellenzinitiative," Research Policy, Elsevier, vol. 49(3).
    19. Shuai Chu & Masanori Kuroki & Xiangbo Liu, 2022. "Do research universities boost regional economic development? -A case study of University of Science and Technology of China," Applied Economics, Taylor & Francis Journals, vol. 54(29), pages 3392-3411, June.
    20. Gawellek, Bastian & Sunder, Marco, 2016. "The German excellence initiative and efficiency change among universities, 2001-2011," Working Papers 142, University of Leipzig, Faculty of Economics and Management Science.
    21. Christian Helmers & Mark Rogers, 2015. "The impact of university research on corporate patenting: evidence from UK universities," The Journal of Technology Transfer, Springer, vol. 40(1), pages 1-24, February.
    22. Frietsch, Rainer & Schubert, Torben & Rothengatter, Oliver, 2017. "An analysis of the Excellence Initiative and its effects on the funded universities," Studien zum deutschen Innovationssystem 11-2017, Expertenkommission Forschung und Innovation (EFI) - Commission of Experts for Research and Innovation, Berlin.
    23. Lutz Bornmann, 2016. "Is the promotion of research reflected in bibliometric data? A network analysis of highly cited papers on the Clusters of Excellence supported under the Excellence Initiative in Germany," Scientometrics, Springer;Akadémiai Kiadó, vol. 107(3), pages 1041-1061, June.
    24. Moulton, Brent R, 1990. "An Illustration of a Pitfall in Estimating the Effects of Aggregate Variables on Micro Unit," The Review of Economics and Statistics, MIT Press, vol. 72(2), pages 334-338, May.
    25. Johannes Koenig & Thomas Brenner & Guido Buenstorf, 2017. "Regional effects of university funding: Excellence at the cost of regional disparity?," Review of Regional Research: Jahrbuch für Regionalwissenschaft, Springer;Gesellschaft für Regionalforschung (GfR), vol. 37(2), pages 111-133, October.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Krieger, Bastian, 2024. "Heterogeneous university funding programs and regional firm innovation," Research Policy, Elsevier, vol. 53(5).
    2. Lehnert, Patrick & Pfister, Curdin & Backes-Gellner, Uschi, 2020. "Employment of R&D personnel after an educational supply shock: Effects of the introduction of Universities of Applied Sciences in Switzerland," Labour Economics, Elsevier, vol. 66(C).
    3. Patrick Lehnert & Madison Dell & Uschi Backes-Gellner & Eric Bettinger, 2024. "The Effect of Postsecondary Educational Institutions on Local Economies: A Bird’s-Eye View," NBER Working Papers 32679, National Bureau of Economic Research, Inc.
    4. Backes-Gellner Uschi & Lehnert Patrick, 2023. "Berufliche Bildung als Innovationstreiber: Ein lange vernachlässigtes Forschungsfeld," Perspektiven der Wirtschaftspolitik, De Gruyter, vol. 24(1), pages 85-97, April.
    5. Tobias Schlegel & Curdin Pfister & Dietmar Harhoff & Uschi Backes-Gellner, 2022. "Innovation effects of universities of applied sciences: an assessment of regional heterogeneity," The Journal of Technology Transfer, Springer, vol. 47(1), pages 63-118, February.
    6. Patrick Lehnert & Curdin Pfister & Dietmar Harhoff & Uschi Backes-Gellner, 2020. "Innovation Effects and Knowledge Complementarities in a Diverse Research Landscape," Economics of Education Working Paper Series 0164, University of Zurich, Department of Business Administration (IBW), revised Jan 2022.
    7. Schultheiss, Tobias & Pfister, Curdin & Gnehm, Ann-Sophie & Backes-Gellner, Uschi, 2023. "Education expansion and high-skill job opportunities for workers: Does a rising tide lift all boats?," Labour Economics, Elsevier, vol. 82(C).
    8. Cantner, Uwe & Grashof, Nils & Grebel, Thomas & Zhang, Xijie, 2023. "When Excellence is not Excellent: The Impact of the Excellence Initiative on the Relative Productivity of German Universities," MPRA Paper 118139, University Library of Munich, Germany.
    9. Pfister, Curdin & Koomen, Miriam & Harhoff, Dietmar & Backes-Gellner, Uschi, 2021. "Regional innovation effects of applied research institutions," Research Policy, Elsevier, vol. 50(4).
    10. Beck, Mathias & Junge, Martin & Kaiser, Ulrich, 2017. "Public Funding and Corporate Innovation," IZA Discussion Papers 11196, Institute of Labor Economics (IZA).
    11. Joan Crespo & Jesús Peiró-Palomino & Emili Tortosa-Ausina, 2020. "Does university performance have an economic payoff for their home regions? Evidence for the Spanish provinces," Working Papers 2020/20, Economics Department, Universitat Jaume I, Castellón (Spain).
    12. Emanuela Marrocu & Raffaele Paci & Stefano Usai, 2022. "Direct and indirect effects of universities on European regional productivity," Papers in Regional Science, Wiley Blackwell, vol. 101(5), pages 1105-1133, October.
    13. Valero, Anna & Van Reenen, John, 2019. "The economic impact of universities: Evidence from across the globe," Economics of Education Review, Elsevier, vol. 68(C), pages 53-67.
    14. Tobias Schlegel & Uschi Backes-Gellner, 2023. "The role of fields of study for the effects of higher education institutions on regional firm location," Small Business Economics, Springer, vol. 61(4), pages 1587-1656, December.
    15. Bertoletti, Alice & Berbegal-Mirabent, Jasmina & Agasisti, Tommaso, 2022. "Higher education systems and regional economic development in Europe: A combined approach using econometric and machine learning methods," Socio-Economic Planning Sciences, Elsevier, vol. 82(PA).
    16. Lorenz Blume & Thomas Brenner & Guido Buenstorf, 2017. "Universities and sustainable regional development: introduction to the special issue," Review of Regional Research: Jahrbuch für Regionalwissenschaft, Springer;Gesellschaft für Regionalforschung (GfR), vol. 37(2), pages 103-109, October.
    17. Agasisti, Tommaso & Bertoletti, Alice, 2022. "Higher education and economic growth: A longitudinal study of European regions 2000–2017," Socio-Economic Planning Sciences, Elsevier, vol. 81(C).
    18. Anna Valero, 2021. "Education and economic growth," CEP Discussion Papers dp1764, Centre for Economic Performance, LSE.
    19. Robbiano, Simone, 2022. "The innovative impact of public research institutes: Evidence from Italy," Research Policy, Elsevier, vol. 51(10).
    20. Uschi Backes-Gellner & Patrick Lehnert, 2021. "The Contribution of Vocational Education and Training to Innovation and Growth," Economics of Education Working Paper Series 0177, University of Zurich, Department of Business Administration (IBW).

    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

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:zbw:zewdip:23006. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ZBW - Leibniz Information Centre for Economics (email available below). General contact details of provider: https://edirc.repec.org/data/zemande.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.