Geographical clustering and the effectiveness of public innovation programs

Arbeitspapier

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.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: ZEW Discussion Papers ; No. 16-083

Classification and Topics

• Classification: Wirtschaft ; Multiple or Simultaneous Equation Models: Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions ; National Government Expenditures and Related Policies: General ; Innovation and Invention: Processes and Incentives ; Management of Technological Innovation and R&D ; Technological Change: Government Policy ; Regional Government Analysis: Other
• Subject: Innovation ; Government Policy ; Regional Government Analysis

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Crass, Dirk ; Rammer, Christian ; Aschhoff, Birgit
• Event: Veröffentlichung
• (who): Zentrum für Europäische Wirtschaftsforschung (ZEW)
• (where): Mannheim
• (when): 2016

Further information

• Handle: http://hdl.handle.net/10419/148366
• URN: urn:nbn:de:bsz:180-madoc-417642
• Last update: 10.03.2025, 11:43 AM CET