IDEAS home Printed from https://ideas.repec.org/p/zbw/zewdip/301866.html
   My bibliography  Save this paper

The interplay between public procurement of innovation and R&D grants: Empirical evidence from Belgium

Author

Listed:
  • Czarnitzki, Dirk
  • Prüfer, Malte

Abstract

This paper investigates the impact of Public Procurement of Innovation (PPI) and Research and Development (R&D) grants on firms' R&D investment using data from Belgian R&D-active firms over the past decade. Our empirical analysis robustly reveals a non-negligible crowding-out effect between the two instruments, suggesting a substitutive relationship. While each policy individually positively influences R&D investment, their combined implementation diminishes their effectiveness. These results challenge prevailing evidence and emphasize the need for a careful policy implementation, raising policymakers' awareness against a blanket increase in innovation policies without considering potential interactions.

Suggested Citation

  • Czarnitzki, Dirk & Prüfer, Malte, 2024. "The interplay between public procurement of innovation and R&D grants: Empirical evidence from Belgium," ZEW Discussion Papers 24-055, ZEW - Leibniz Centre for European Economic Research.
    • Handle: RePEc:zbw:zewdip:301866
    as

    Download full text from publisher

    File URL: https://www.econstor.eu/bitstream/10419/301866/1/1899407499.pdf
    Download Restriction: no
    ---><---

    More about this item

    Keywords

    Public procurement of innovation; Research and Development; Econometric policy evaluation; Crowding-out;
    All these keywords.

    JEL classification:

    • H57 - Public Economics - - National Government Expenditures and Related Policies - - - Procurement
    • O38 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Government Policy

    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:301866. 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.

    We have no bibliographic references for this item. You can help adding them by using 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.