Additionality of public R&D grants in a transition economy: the case of Eastern Germany.

This paper examines the input and output additionality of public R&D subsidies in Western and Eastern Germany. We estimate the impact of public R&D grants on firms' R&D and innovation input. Based on the results of this first step we compare the impact of publicly funded private R&D on innovation output with the output effect of R&D funded out of firms' own pockets. We employ microeconometric evaluation methods using firm-level data derived from the Mannheim Innovation Panel. Our results point toward a large degree of additionality in public R&D grants with regard to innovation input measured as R&D expenditures and innovation expenditures, as well as with regard to innovation output measured by patent applications. Input additionality has been more pronounced in Eastern Germany during the transition period than in Western Germany. However, R&D productivity is still larger for the established Western German innovation system than for Eastern Germany. Hence, a regional redistribution of public R&D subsidies might improve the overall innovation output of the German economy.Evaluation of public policy; Innovation; R&D; Subsidies;

A legacy handbook for business support

Legacy Handbook reviewing emda's experience of business support activity. Identifies key achievements and draws out lessons learned that may be relevant to successor bodies active in this area

A legacy handbook for manufacturing

Legacy Handbook reviewing emda's experience of manufacturing activity. Identifies key achievements and draws out lessons learned that may be relevant to successor bodies active in this area

Creating a 21st Century national innovation system for a 21st Century Latvian economy

The Latvian economy made great strides in recovering from the economic shock of the early transition and the adverse aftereffects of the 1998 Russian financial crisis. Nevertheless, Latvia faces serious challenges to its future growth and prosperity despite these impressive achievements and the outward appearance of macroeconomic stability and economic progress. A wide variety of recent studies suggest that the Latvian economy is not particularly competitive and, even more worrisome, they indicate that Latvia is not well positioned to gain ground in the race for global competitiveness, prosperity, and rising standards of living. Most of Latvia's growth to date has come from one-off gains generated by structural reforms, privatization, and reallocating resources, not inexhaustible reservoirs of growth. Latvian enterprises will be able to sustain economic growth and create high wage jobs only by becoming internationally competitive, innovating, accumulating new knowledge and technology, and finding a high value added niche in the European and global division of labor. This paper is designed to help Latvian leaders develop a clear diagnosis of the innovation and competitiveness challenges facing Latvia as it prepares to enter the EU and, more important, design and implement policies and programs to ensure that Latvia reaps the maximum possible benefits from EU structural funds. Section II analyzes the current structure of Latvia's production, imports, and exports. Section III uses data from a number of competitiveness reports to benchmark Latvia's current progress against a number of comparator countries and to pinpoint Latvia's strengths and weaknesses as an innovative economy. Section IV offers a detailed list of potential policies and programs that could improve the competitiveness of Latvian enterprises and the efficiency of the Latvian National Innovation System. The recommendations include specific policies and programs to improve (1) the production of knowledge in Latvia, (2) the commercialization of technology produced by Latvian scientists, small companies, and research institutes, and (3) local firms'capacity to absorb, adapt, and adopt existing knowledge produced outside Latvia for use inside Latvia.ICT Policy and Strategies,Economic Theory&Research,Labor Policies,Environmental Economics&Policies,Agricultural Knowledge&Information Systems,Environmental Economics&Policies,Economic Theory&Research,Agricultural Knowledge&Information Systems,ICT Policy and Strategies,Banks&Banking Reform

A Preliminary Review of the American Recovery and Reinvestment Act’s Clean Energy Package

The American Recovery and Reinvestment Act included more than $90 billion in strategic clean energy investments intended to promote job creation and promote deployment of low-carbon technologies. In terms of spending, the clean energy package has been described as the nation’s “biggest energy bill in history.” To provide a preliminary assessment of the Recovery Act’s clean energy package, this paper reviews the rationale, design, and implementation of the act. The paper surveys the policy principles for clean energy stimulus and describes the process of crafting the clean energy package during the 2008–2009 Presidential Transition. Then, the paper reviews the initial employment, economic activity, and energy outcomes associated with these energy investments and provides a more detailed case study on the Recovery Act’s support for renewable power through grants and loan guarantees. The paper concludes with lessons learned.economic stimulus, tax credits, energy loan guarantees, climate change, renewable energy

Approaches to results-based funding in tertiary education : identifying finance reform options for Chile

Unrealized potential exists for increasing accountability and transparency in Chilean tertiary education by allocating resources based on achieved results rather than historical precedence and political negotiation. Against this background, the authors profile approaches to results-based funding of tertiary education to identify efficacious finance reform options for Chile. International experience shows that financing by results is not a ready-made concept, but a broad label that offers a menu of design options. To decipher results-based funding, the authors cover all phases in designing and implementing a results-based funding system and highlight strengths and weaknesses of concepts, such as taximeter funding, performance contracts, and formula-based allocations.Public Health Promotion,Agricultural Knowledge&Information Systems,Decentralization,Teaching and Learning,Health Monitoring&Evaluation,Agricultural Knowledge&Information Systems,Gender and Education,Health Monitoring&Evaluation,Curriculum&Instruction,Teaching and Learning

Stimulating innovation in Russia: the role of institutions and policies

This paper examines the potential role of innovation policy in enhancing long-term productivity growth in Russia. It begins by exploring the role of framework conditions for business in encouraging innovative activities, particularly with respect to intellectual property rights and competition. Realising Russia’s innovation potential will also require reform of the large public science sector. This raises issues pertaining to the organisation and financing of public research bodies and, in particular, to the incentives and opportunities they face in commercialising the results of their research. Finally, the paper looks at the potential role of direct interventions, such as special economic zones and technoparks, as well as the scope for improving the tax regime for private-sector R&D

Developing green: A case for the Brazilian manufacturing industry

The recent IPCC Special Report on global warming of 1.5 °C emphasizes that rapid action to reduce greenhouse gas (GHG) emissions is vital to achieving the climate mitigation goals of the Paris Agreement. The most-needed substantial upscaling of investments in GHG mitigation options in all sectors, and particularly in manufacturing sectors, can be an opportunity for a green economic development leap in developing countries. Here, we use the Brazilian manufacturing sectors as an example to explore a transformation of its economy while contributing to the Paris targets. Projections of Brazil's economic futures with and without a portfolio of fiscal policies to induce low carbon investments are produced up to 2030 (end year of Brazil's Nationally Determined Contribution-NDC), by employing the large-scale macro econometric Energy-Environment-Economy Model, E3ME. Our findings highlight that the correct mix of green stimulus can help modernize and decarbonize the Brazilian manufacturing sectors and allow the country's economy to grow faster (by up to 0.42% compared to baseline) while its carbon dioxide (CO2) emissions decline (by up to 14.5% in relation to baseline). Investment levels increase, thereby strengthening exports' competitiveness and alleviating external constraints to long-term economic growth in net terms

Government R&D funding: new approaches in the allocation policies for public and private beneficiaries

The objective of this paper is to perform a first experiment of quantitative assessment on changes in allocation mechanisms and in their underlying delegation models, using the quantitative information and the descriptions of national funding systems produced in the PRIME project funding activity. Delegation has been explored through changes in instrument portfolios and in evaluation modes, as proofs of an evolution in research governance. Some common trends can be identified: the reinforcing of both priority setting and peer review processes. The general result of our analysis is that some change in delegation modes took place, but there is not a simple transition from one delegation regime to another, while a "contract" delegation model (the NPM reform) is not detectable through project funding analysis.R/D funding, allocation policy, project funding, research governance, evaluation modes, delegation models

Where To Get the Green: Sources of Funds for Green Entrepreneurs

Many people struggle to figure out how they can obtain the capital required to start and/or scale a business. This guide may not offer all of the answers, but it does provide helpful insights into a wide variety of financing options available to aspiring entrepreneurs as well as existing small business owners