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on Technology and Industrial Dynamics |
| By: | Edquist, Charles (CIRCLE, Lund University) |
| Abstract: | ‘Activities’ in innovation systems are the determinants of the development and diffusion of innovations. Examples are R&D, provision of organizations and institutions, financing of innovations, incubation, etc. These activities are partly performed by private organizations and partly by public organizations, the latter performing tasks that constitute innovation policy. As a basis for innovation policy, the problems (failures) in the systems must be identified. This paper focuses upon the design of innovation policy through diagnostic analysis; it provides a framework for identification of systemic problems (or failures) in innovation systems. |
| Keywords: | Innovations systems; innovation policy |
| JEL: | O30 |
| Date: | 2011–10–21 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:lucirc:2011_006&r=tid |
| By: | Francesco Crespi; Cristiano Antonelli |
| Abstract: | The paper explores the causes and effects of persistence in the discretionary allocation of public subsidies to R&D activities performed by private firms in high-tech and low-tech industries. It applies the distinction between virtuous Matthew-effects and vicious Matthew-effects. The former qualifies the persistence in the discretionary allocation of public subsidies in terms of sheer reputation based upon previous awards. The latter is identified by the role of the accumulation of competence stemming from past grants in current R&D activities. Virtuous Matthew effects are found in high-tech industries where knowledge cumulability is higher. In traditional industries, vicious Matthew effects prevail for the lower levels of knowledge cumulability. Here reputation-Matthew-effects can lead to substitution of private funds with public ones. The empirical analysis is based on Transition Probability Matrices, probit regressions and Propensity Score Matching on around 700 Italian firms in the years 1998-2003. |
| Keywords: | Innovation; R&D subsidies; Matthew effects; past dependence; path dependence |
| JEL: | H25 H32 L52 |
| Date: | 2011–10 |
| URL: | http://d.repec.org/n?u=RePEc:rtr:wpaper:140&r=tid |