Geographical clustering and the effectiveness of public innovation programs


Crass, Dirk ; Rammer, Christian ; Aschhoff, Birgit


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URL: https://ub-madoc.bib.uni-mannheim.de/41764
URN: urn:nbn:de:bsz:180-madoc-417642
Document Type: Working paper
Year of publication: 2016
The title of a journal, publication series: ZEW Discussion Papers
Volume: 16-083
Place of publication: Mannheim
Publication language: English
Institution: Sonstige Einrichtungen > ZEW - Leibniz-Zentrum für Europäische Wirtschaftsforschung
MADOC publication series: Veröffentlichungen des ZEW (Leibniz-Zentrum für Europäische Wirtschaftsforschung) > ZEW Discussion Papers
Subject: 330 Economics
Classification: JEL: C35 , H50 , O31 , O32 , O38 , R59,
Keywords (English): Innovation , government policy , regional government analysis
Abstract: The paper analyzes how geographical clustering of beneficiaries might affect the effectiveness of public innovation support programs. The geographical proximity of firms operating in the same industry or field of technology is expected to facilitate innovation through knowledge spillovers and other localization advantages. Public innovation support programs may leverage these advantages by focusing on firms that operate in a cluster. We investigate this link using data from a large German program that co-funds R&D projects of SMEs in key technology areas called ‘Innovative SMEs’. We employ three alternative cluster measures which capture industry, technology and knowledge dimensions of clusters. Regardless of the measure, firms located in a geographical cluster are more likely to participate in the program. Firms being part of a knowledge-based cluster significantly increases their chance of receiving public financial support. We find no effects, however, of geographical clustering on the program’s effectiveness in terms of input or output additionality.

Das Dokument wird vom Publikationsserver der Universitätsbibliothek Mannheim bereitgestellt.




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Crass, Dirk ; Rammer, Christian ; Aschhoff, Birgit (2016) Geographical clustering and the effectiveness of public innovation programs. Open Access ZEW Discussion Papers Mannheim 16-083 [Working paper]
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