Economics of Innovation at TUM

Our research in the area of applied microeconomics focuses on the economics of innovation and the economics of science.

Research News

Research on the role of public start-up grants for the attraction of venture capital forthcoming in the "Journal of Business Venturing Insights"

Publikationen |


Abstract:
Research suggests that public subsidies for newly founded firms have a positive effect on follow-on financing, in particular on Venture Capital (VC), through providing certification and early-stage liquidity. This study shows that the various sources of VC value public start-up subsidies differently. It is the first to differentiate between distinct types of investors who pursue different investment strategies. We show for a large sample of knowledge-intensive start-ups that there is indeed a correlation between subsidies and all sources of VC (Government VC, Independent VC, Corporate VC, and Business Angels). However, when accounting for firm characteristics that drive both selection into public subsidies as well as into VC financing through econometric matching techniques, subsidies are no longer linked to all types, but mainly to Government VC and Business Angel financing. We discuss possible explanations for this finding and implications for entrepreneurial finance.


Recent Publications (click to see all publications)

Research and product or process development are two distinct, yet complementary innovation activities. Making use of a specific grant-based policy design that explicitly distinguishes between research projects, development projects, and mixed R&D projects, this study estimates the direct and cross scheme effects on both research and development investments of recipient firms. Positive cross scheme effects can be expected when research and development activities are complementary and financing constraints are more binding for research than for…

This study sheds light on the unexplored phenomenon of multiple institutional affiliations using scientific publications. Institutional affiliations are important in the organisation and governance of science. Multiple affiliations may alter the traditional framework of academic employment and careers and may require a reappraisal of institutional assessment based on research outcomes of affiliated staff. Results for authors in three major science and technology nations (Germany, Japan and the UK) and in three fields (biology, chemistry, and…

Academics are increasingly encouraged to acquire external grants to finance their research, and often hold grants from multiple funders concurrently to ensure the continuity of their work. However, there are concerns that inefficiencies occur when funding is received from multiple sponsors, especially when this originates from different sectors. This study investigates complementarities between public/non-profit and private sector sources of research funding with regard to academic output in terms of publications, research impact and research…

We present empirical evidence suggesting that weak tax enforcement proxied by the extent of tax evasion in a country acts like a lower corporate tax rate in attracting profits of multinational corporations.

This study investigates induced productivity effects of firms introducing new environmental technologies. The literature on within-firm organisational change and productivity suggests that firms can achieve higher productivity gains from adopting new technologies if they adapt their organisational structures. Such complementarity effects may be of particular importance for the adoption of greenhouse gas (GHG) abatement technologies. The adoption of these technologies is often induced by public authorities to limit the social costs of climate…

R&D collaboration facilitates the pooling of complementary skills, learning from the partner as well as the sharing of risks and costs. Research therefore stresses the positive relationship between collaborative R&D and innovation performance. Fewer studies address the potential drawbacks of collaborative R&D. Collaborative R&D comes at the cost of coordination and monitoring, requires knowledge disclosure, and involves the risk of opportunistic behavior by the partners. Thus, while for lower collaboration intensities the net gains can be high,…