New chapters on 'Financing constraints for innovation' and 'Research and Development Subsidies' published in the Elgar Encyclopedia on the Economics of Knowledge and Innovation.
Publikationen
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Abstract #1: Investment in innovation is characterized by uncertain and often intangible outcomes, knowledge spillovers as well as information asymmetries between managers vis-à-vis lenders and investors. These properties affect the financing of innovation. Financing constraints occur when firms' innovation activities are affected negatively by the lack of internal financing and constrained access to external financing, including high cost of debt or a shortage of equity. The extent to which a firm's innovation activities are affected by financing constraints depends on its size, maturity and the nature of its innovation investments: Smaller and younger firms as well as firms pursuing more radical innovation projects are more likely to face financing constraints than larger, older or incrementally innovating firms.
Abstract #2: Subsidies for research and development (R&D) are an important innovation policy tool. The economic rationale behind R&D subsidies is that private sector R&D is lower than socially desirable due to positive externalities and financing constraints. R&D subsidies are often designed as direct, project-based grants. Companies apply for them at public funding bodies who administered applications and make funding decisions on a case-by-case basis. An alternative way of granting R&D subsidies is through tax credits. Research shows that both forms of R&D subsidies can trigger additional R&D, but the evidence also suggests that the extent to which R&D subsidies initiate and expand R&D in recipient firms depends on the characteristics of the firm and the type of project that is subsidized.
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…
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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…
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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…
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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.
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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…
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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,…
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