Analyzing the Interaction between R&D Subsidies and Firm’s Innovation Strategy

  1. Afcha, Sergio Moises 1
  1. 1 Universitat de Barcelona
    info

    Universitat de Barcelona

    Barcelona, España

    ROR https://ror.org/021018s57

Aldizkaria:
Journal of Technology Management & Innovation

ISSN: 0718-2724

Argitalpen urtea: 2012

Alea: 7

Zenbakia: 3

Orrialdeak: 57-70

Mota: Artikulua

DOI: 10.4067/S0718-27242012000300006 DIALNET GOOGLE SCHOLAR lock_openSarbide irekia editor

Beste argitalpen batzuk: Journal of Technology Management & Innovation

Garapen Iraunkorreko Helburuak

Laburpena

Innovation and Technology policies provide positive incentives to the firms to perform R&D activities. This article examines the decision of internal and external R&D expenditures of subsidized firms, estimating the impact of R&D subsidies on firms performing different innovation strategies. The Spanish survey on business strategy for manufacturing firms (ESEE) is used for the period 1998-2005. Results show that determinants of pure internal or external R&D expenditures obey to different motivations, affecting in consequence, the impact of the subsidies on firms adopting different sources of knowledge.

Erreferentzia bibliografikoak

  • ALMUS, M., Czarnitzki, D. (2003). The Effects of Public R&D Subsidies on Firms’ Innovation Activities. Journal of Business and Economic Statistics, 21(2), 226-236.
  • ARORA, A., Gambardella, A. (1990). Complementarity and External Linkages: The Strategies of The Large Firms In Bio-technology. The Journal of Industrial Economics, 38(4), 361-379.
  • ARORA, A., Gambardella, A. (1994). Evaluating Technological Information and Utilizing it: Scientific Knowledge, Technological Capability, and External Linkages in Biotechnology. Journal of Economic Behavior & Organization, 24(1), 91-114.
  • ATUAHENE-GIMA, K. (1992). Inward Technology Licensing as an Alternative to Internal R&D in New Product Development: A Conceptual Framework. Journal of Product Innovation Management, 9(2), 156-167.
  • AUDRETSCH, D. B., Menkveld, A., Thurik, A. R. (1996). The Decision Between Internal and External R&D. Journal of Institutional and Theoretical Economics. Zeitschrift fur die Gesamte Staatswissenschaft, 152(3), 519-530.
  • AUTIO, E., Kanninen, S., Gustafsson, R. (2008). First-and Second-Order Additionality and Learning Outcomes in Collaborative R&D Programs. Research Policy, 37(1), 59-76.
  • BAUMOL,W. J. (2002).The Free-Market Innovation Machine: Analyzing the Growth Miracle of Capitalism. Princeton University Press, Princeton.
  • BECKER,W., Dietz, J. (2004). R&D Cooperation and Innovation Activities of Firms-Evidence for the German Manufacturing Industry. Research policy, 33(2), 209-223.
  • BELDERBOS, R., Carree, M., Diederen, B., Lokshin, B.,Veugelers, R. (2004). Heterogeneity in R&D Cooperation Strategies. International Journal of Industrial Organization, 22(8-9), 1237-1263.
  • BELDERBOS, R., Carree, M., Lokshin, B. (2006). Complementarity in R&D Cooperation Strategies. Review of Industrial Organization, 28(4), 401-426.
  • BENEITO, P. (2003). Choosing Among Alternative Technological Strategies: An Empirical Analysis of Formal Sources of Innovation. Research Policy, 32(4), 693-713.
  • BERGMAN, K., Ejermo, O., Fischer, J., Hallonsten, O., Hansen, H. K., Moodysson, J. (2010). Effects of VINNOVA Programmes on Small and Medium-sized Enterprises-the cases of Forska&Väx and VINN NU, Sweden.
  • BLANES, J.V., Busom, I. (2004).Who Participates in R&D Subsidy Programs?: The Case of Spanish Manufacturing Firms. Research policy, 33(10), 1459-1476.
  • BÖNTE, Werner. (2003). R&D and Productivity: Internal Vs. External R&D - Evidence from West German Manufacturing Industries. Economics of Innovation and New Technology, 12(4), 343-360.
  • BUSOM, I., Fernández-Ribas, A. (2008). The Impact of Firm Participation in R&D Programmes on R&D Partnerships. Research Policy, 37(2), 240-257.
  • BUSOM, I. (2000). An Empirical Evaluation of the Effects of R&D Subsidies. Economics of Innovation and New Technology, 9(2), 111-148.
  • CALOGHIROU, Y., Kastelli, I., Tsakanikas, A. (2004). Internal Capabilities and External Knowledge Sources: Complements or Substitutes for Innovative Performance? Technovation, 24(1), 29-39.
  • CASSIMAN, B., Veugelers, R. (2006). In Search of Complementarity in Innovation Strategy: Internal R&D and External Knowledge Acquisition. Management Science, 52(1), 68-82.
  • CLARYSSE, B.,Wright, M., Mustar, P. (2009). Behavioural additionality of R&D subsidies: A Learning Perspective. Research Policy, 38(10), 1517-1533.
  • COASE, R. H. (1937). The Nature of the Firm. Economica, 4(16), 386-405.
  • COHEN,W. M., Levinthal, D.A. (1989). Innovation and Learning:The Two Faces of R & D.The Economic Journal, 99(397), 569-596.
  • CZARNITZKI, D. (2006). Research and Development in Small and Medium Sized Enterprises: The Role of Financial Constraints and Public Funding. Scottish Journal of Political Economy, 53(3), 335-357.
  • CZARNITZKI, D., Licht, G. (2006). Additionality of Public R&D Grants in a Transition Economy. Economics of Transition, 14(1), 101-131.
  • DAVID, P. A., Hall, B. H., Toole, A. A. (2000). Is Public R&D a Complement or Substitute For Private R&D? A Review of the Econometric Evidence. Research Policy, 29(4-5), 497-529.
  • DHONT-PELTRAULT, E., Pfister, E.(2011) R&D Cooperation Versus R&D Subcontracting: Empirical Evidence from French Survey Data. Economics of Innovation and New Technology, 20(4), 309-341.
  • DUCH, N., García-Quevedo, J., Montolio, D. (2011). The link between public support and prívate effort:What is the Optimal Subsidy? XREAP Working Papers, No. 2011-09, http://www.ub.edu/ubeconomics/wp-content/uploads/2012/02/XREAP2011-091.pdf [Accessed September 12, 2012]
  • DUGUET, E. (2004). Are R&D Subsidies A Substitute or a Complement to Privately Funded R&D? Evidence from France Using Propensity Score Methods for Non Experimental Data. Revue d’Economie Politique, 114(2), 263-292.
  • FÖLSTER, S. (1995). Do Subsidies to Cooperative R&D Actually Stimulate R&D Investment and Cooperation? Research Policy, 24(3), 403-417.
  • FRENZ, M., Letto-Gillies, G. (2009). The Impact on Innovation Performance of Different Sources of Knowledge: Evidence from The UK Community Innovation Survey. Research Policy, 38(7), 1125-1135.
  • FRITSCH, M., Lukas, R. (2001). Who Cooperates on R&D? Research Policy, 30(2), 297-312.
  • GARCÍA-QUEVEDO, J., Afcha, S. (2009). El Impacto del Apoyo Público a la I+ D Empresarial: Un Análisis Comparativo entre las Subvenciones Estatales y Regionales. Investigaciones Regionales (15), 277-294.
  • GIRMA, S., Görg, H., Hanley,A., Strobl, E. (2010).The Effect of Grant Receipt on Start-Up Size: Evidence from Plant Level Data. Journal of International Entrepreneurship, 8(4), 371-391.
  • GONZÁLEZ, X., Pazó, C. (2008). Do Public Subsidies Stimulate Private R&D Spending? Research Policy, 37(3), 371-389.
  • GRANSTRAND, O., Pavitt, K. (1997). Multi-Technology Corporations: Why They Have ‘Distributed’ Rather than ‘Distinctive’ Core Competence. California Management Review, 39(4), 8-25.
  • HALL, B. (2002). The Financing of Research and Development. Oxford Review of Economic Policy, 18(1), 35-51.
  • HERRERA, L., Heijs, J. (2007). Difusión y Adicionalidad de las Ayudas Públicas a la Innovación. Revista de Economía Aplicada, 15(44), 177-197.
  • HOWELLS, J., James, A., Malik, K. (2003). The Sourcing of Technological Knowledge: Distributed Innovation Processes and Dynamic Change. R&D Management, 33(4), 395-409.
  • HUERGO, E.,Trenado, M. (2010).The Application for and the Awarding of Low-Interest Credits to Finance R&D Projects. Review of Industrial Organization, 37(1),237-259.
  • JAFFE, A. B. (2008). The “Science of Science Policy”: Reflections on the Important Questions and the Challenges they Present.The Journal of Technology Transfer, 33(2), 131-139.
  • JANG,W., Chang,W. (2008).The Impact of Financial Support System on Technology Innovation: A Case of Technology Guarantee System in Korea. Journal of Technology Management and Innovation, 3(1), 10-16.
  • JONES, G. K. (2001). Determinants and Performance Impacts of External Technology Acquisition. Journal of Business Venturing, 16(3), 255-283.
  • LACH, S. (2002). Do R&D Subsidies Stimulate or Displace Private RD? Evidence from Israel. Journal of Industrial Economics, 50(4), 369-390.
  • LAURSEN, K., Salter, A. (2004). Searching High and Low: What Types of Firms Use Universities as a Source of Innovation? Research Policy, 33(8), 1201-1215.
  • LEIBLEIN, M. J., Reuer, J. J., Dalsace, F. (2002). Do Make or Buy Decisions Matter? The Influence of Organizational Governance on Technological Performance. Strategic Management Journal, 23(9), 817-833.
  • LICHTENBERG, F. R. (1984).The Relationship between Federal Contract R&D and Company R&D. The American Economic Review, 74(2), 73-78.
  • LOVE, J. H., Roper, S. (2002). Internal Versus External R&D: A Study of R&D Choice with Sample Selection. International Journal of the Economics of Business, 9(2), 239-255.
  • MALIK, K., Cunningham, P. (2006). Transnational Policy Learning in Europe: Attempts to Transfer Innovation Policy Practices. Innovation: Management, Policy & Practice, 8(3), 262-272.
  • MIOTTI, L., Sachwald, F. (2003). Co-Operative R&D: Why and With Whom?: An Integrated Framework of Analysis. Research Policy, 32(8), 1481-1499.
  • MOHNEN, P., Hoareau, C. (2003). What Type of Enterprise Forges Close Links with Universities and Government Labs? Evidence From CIS 2. Managerial and Decision Economics, 24(2-3), 133-145.
  • MONJON, S., Waelbroeck, P. (2003). Assessing Spillovers from Universities to Firms: Evidence from French Firm-Level Data. International Journal of Industrial Organization, 21(9), 1255-1270.
  • MONTOYA, P., Zárate, R., Martín, L. (2007). Does the Technological Sourcing Decision Matter? Evidence from Spanish Panel Data. R&D Management, 37(2), 161-172.
  • MOWERY, D. C. (1983).The Relationship between Intrafirm and Contractual Forms of Industrial Research in American Manufacturing, 1900-1940. Explorations in Economic History, 20(4), 351-374.
  • NARULA, R. (2001). Choosing Between Internal and Non-Internal R&D Activities: Some Technological and Economic Factors.Technology Analysis & Strategic Management, 13(3), 365-387.
  • NORRMAN, C., Klofsten, M. (2010). Financing NewVentures: Attitudes Towards Public Innovation Support. New Technology-Based Firms in the New Millennium, 8 (8), 89-110.
  • PIGA, C. A., Vivarelli, M. (2004). Internal and External R&D: A Sample Selection Approach. Oxford Bulletin of Economics and Statistics, 66(4), 457-482.
  • PISANO, G.(1990). The R&D Boundaries of the Firm: An Empirical Analysis. Administrative Science Quarterly, 35(4), 153-176.
  • SCHMIEDEBERG, C. (2008). Complementarities of Innovation Activities: An Empirical Analysis of the German Manufacturing Sector. Research Policy, 37(9), 1492-1503.
  • SEGARRA-BLASCO, A., García-Quevedo, J., Teruel-Carrizosa, M. (2008). Barriers to Innovation and Public Policy in Catalonia. International Entrepreneurship and Management Journal, 4(4), 431-451.
  • SHAPIRA, P., Kuhlmann, S. (2003). Learning from Science and Technology Policy Evaluation. In: Shapira, S. Kuhkmann, S. (Eds.), Learning from Science and Technology Policy Evaluation: Experiences from the United States and Europe. Edward Elgar Publishing, London. pp. 1-17.
  • STEIN, H., Ginevicius, R. (2010). Overview and Comparison of Profit Sharing in Different Business Collaboration Forms. Journal of Business Economics and Management, 11(3), 428 - 443.
  • TEECE, D. J. (1980). Economies of Scope and the Scope of the Enterprise. Journal of Economic Behavior & Organization, 1(3), 223-247.
  • TEECE, D. J. (1986). Profiting From Technological Innovation: Implications for Integration, Collaboration, Licensing and Public Policy. Research Policy, 15(6), 285-305.
  • TETHER, B. S. (2002).Who Co-Operates for Innovation, and Why: An Empirical Analysis. Research Policy, 31(6), 947-967.
  • TOOLE, A. A., Turvey, C. (2009). How Does Initial Public Financing Influence Private Incentives for Follow-on Investment in Early-Stage Technologies? The Journal of Technology Transfer, 34(1), 43-58.
  • TSAI, K. H., Wang, J. C. (2007). Inward Technology Licensing and Firm Performance: A Longitudinal Study. R& D Management, 37(2), 151-160.
  • UGHETTO, E. (2008). Does Internal Finance Matter For R&D? New Evidence from a Panel of Italian Firms. Cambridge Journal of Economics, 32(6), 907.
  • VEGA-JURADO, J., Gutiérrez-Gracia, A., Fernández-De-Lucio, I. (2009). Does External Knowledge Sourcing Matter for Innovation? Evidence from the Spanish Manufacturing Industry. Industrial and Corporate Change, 18(4), 637-670.
  • VEGA-JURADO, J., Gutiérrez-Gracia, A., Fernández-De-Lucio, I. (2009). La relación entre las estrategias de innovación: Coexistencia o Complementariedad 4(3), 74-88.
  • VEGA-JURADO, J., Gutiérrez-Gracia, A., Fernández-De-Lucio, I., Manjarrés-Henríquez, L. (2008).The Effect of External and Internal Factors on Firms’ Product Innovation. Research Policy, 37(4), 616-632.
  • VEUGELERS, R. (1997). Internal R & D Expenditures and External Technology Sourcing. Research Policy, 26(3), 303-315.
  • VEUGELERS, R., Cassiman, B. (1999). Make And Buy In Innovation Strategies: Evidence From Belgian Manufacturing Firms. Research Policy, 28(1), 63-80.
  • WALLSTEN, Scott J. (2000). The Effects of Government-Industry R&D Programs on Private R&D: The Case of the Small Business Innovation Research Program. The RAND Journal of Economics, 31(1), 82-100.
  • WATKINS, T. A., Paff, L. A. (2009). Absorptive Capacity and R&D Tax Policy: Are In-House And External Contract R&D Substitutes or Complements? Small Business Economics, 33(2), 207-227.
  • WILLIAMS, C., Lee, S. H. (2009). Exploring the Internal and External Venturing of Large R&D Intensive Firms. R&D Management, 39(3), 231-246.
  • WILLIAMSON, O. (1989). Transaction Cost Economics. In: Schmalensee, R.,Willig., R. (Eds.), Handbook of Industrial Organization. Elsevier, Amsterdam. pp. 135-182.