nep-ino New Economics Papers
on Innovation
Issue of 2025–03–17
five papers chosen by
Uwe Cantner, University of Jena


  1. Industry-science-interaction in innovation: The role of transfer channels and policy support By Carioli, Paolo; Czarnitzki, Dirk; Rammer, Christian
  2. R&D grants and R&D tax credits in Belgium: Evidence on the policy mix By Pierluigi, Angelino; Czarnitzki, Dirk; Hovdan, Brigitte
  3. Which start-ups win public procurement tenders? By Krieger, Bastian; Füner, Lena; Prüfer, Malte
  4. The Effect of Application Fees on Entry into Patenting By Gaétan de Rassenfosse; Adam B. Jaffe
  5. The Misuse of China’s R&D Subsidies: Estimating Treatment Effects With One-Sided Noncompliance By Boeing, Philipp; Peters, Bettina

  1. By: Carioli, Paolo; Czarnitzki, Dirk; Rammer, Christian
    Abstract: We investigate the effects of different channels of industry-science collaboration on new product sales at the firm-level and whether government subsidies for collaboration make a difference. We distinguish four collaboration channels: joint R&D, consulting/contract research, IP licensing, human resource transfer. Employing firm-level panel data from the German Community Innovation Survey and a conditional difference-in-differences methodology, we find a positive effect of industry-science collaboration on product innovation success only for joint R&D, but not for the other three channels. The positive effect is limited to subsidized collaboration. Our results suggest that government subsidies are required to bring firms and public science into forms of collaboration that are effective in producing higher innovation output.
    Keywords: Industry-science collaboration, transfer channels, product innovation, treatment effects analysis
    JEL: O31 O38
    Date: 2024
    URL: https://d.repec.org/n?u=RePEc:zbw:zewdip:312187
  2. By: Pierluigi, Angelino; Czarnitzki, Dirk; Hovdan, Brigitte
    Abstract: Drawing on a longitudinal database of Belgian firms over the years 2014-2020, this study investigates the joint effect of R&D grants and R&D tax credits on R&D inputs and innovation outputs. We estimate Conditional Difference-in-Difference (CDiD) models and apply both treatment effects estimators that account for heterogeneous, staggered treatments as well as standard two-way fixed effects DiD estimators. We find positive treatment effects for both grants and tax credits on R&D employment, R&D employment intensity, and total R&D expenditures. R&D tax credits have a significant positive impact on the share of sales of new or improved products. By comparing the results obtained by the two econometric methods, we also find that the standard two-way fixed effects models may lead partially to potentially wrong conclusions about the impacts of such policies, as the traditional estimators may not sufficiently account for the complexity of how the policy instrument affect firm-level outcomes.
    Keywords: Policy mix, innovation, R&D grants, R&D tax credits, difference-in-difference
    JEL: D22 H25 L53 O32 O38
    Date: 2024
    URL: https://d.repec.org/n?u=RePEc:zbw:zewdip:312192
  3. By: Krieger, Bastian; Füner, Lena; Prüfer, Malte
    Abstract: We explore which start-ups win in public procurement. Most notably, our analysis presents significant differences between firms applying for tenders with and without functional criteria. First, we use representative telephone survey data to estimate public procurement applicant and winner shares for the population of German start-ups. We find in total eleven percent of start-up firms applied for public tenders since their foundation, and 65 percent of them won at least one tender. Additionally, younger and more innovative firms tend to apply for and win tenders with functional criteria, while older and less innovative firms tend to apply for and win tenders without functional criteria. Second, we employ non-linear estimation methods to identify firm and founder characteristics predicting to win public tenders within the group of applicants. Start-ups applying for functional tenders profit from smaller foundation teams, younger founders, more industry experience, and higher innovation capacities, while start-ups applying for tenders without functional criteria, profit from larger foundation teams, older founders, more industry experience, and the absence of founding experience
    Keywords: Public procurement, Start-up firms, Innovation
    JEL: H57 L26 O38
    Date: 2024
    URL: https://d.repec.org/n?u=RePEc:zbw:zewdip:312190
  4. By: Gaétan de Rassenfosse; Adam B. Jaffe
    Abstract: Ensuring broad access to the patent system is crucial for fostering innovation and promoting economic growth. To support this goal, the U.S. Patent and Trademark Office offers reduced fees for small and micro entities. This paper investigates whether fee rates affect the filing of applications by small and micro entities. Exploiting recent fee reforms, the study evaluates the relationship between fee changes and the number of new entrants, controlling for potential confounding factors such as legislative changes. The findings suggest that fee reductions alone are insufficient to significantly increase participation in the patent system among small and micro entities.
    JEL: O30 O31
    Date: 2025–02
    URL: https://d.repec.org/n?u=RePEc:nbr:nberwo:33492
  5. By: Boeing, Philipp; Peters, Bettina
    Abstract: We investigate the misuse of R&D subsidies and evaluate its consequences for policy effectiveness. Developing a theoretical framework and using Chinese firm-level data for 2001-2011, we identify that 42% of grantees misappropriated R&D subsidies for non-R&D purposes, accounting for 53% of total R&D subsidies. Misuse leads to a substantial loss in the causal impact of R&D subsidies, as measured by the difference between the intention-to-treat and complier average causal effect. R&D expenditures could have been stimulated beyond the subsidy amount (additionality), but misuse (noncompliance) resulted in medium-level partial crowding out, reducing the effectiveness of China’s R&D policy by more than half.
    Keywords: R&D subsidies, policy evaluation, misuse, China
    JEL: O31 O38 C21 H21
    Date: 2024
    URL: https://d.repec.org/n?u=RePEc:zbw:zewdip:312195

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