The Relationship between R&D Collaboration, Subsidies and Patenting Activity: Empirical Evidence from Finland and Germany

This study focuses on the impact of innovation policies and R&D collaboration in Germany and Finland. We consider collaboration and subsidies as heterogeneous treatments, and perform an econometric matching to analyze R&D and patent activity at the firm level. In general, we find that collaboration has positive effects. In Germany, subsidies for individual research do not exhibit a significant impact neither on R&D nor patenting, but the innovative performance could be improved by additional incentives for collaboration. For Finnish companies, public funding is an important source of finance for R&D. Without subsidies, recipients would show less R&D and patenting activity, whilst those firms not receiving subsidies would perform significantly better if they were publicly funded. --R&D,Public Subsidies,Collaboration,Policy Evaluation

Why do Firms Co-operate for Innovation? - A comparison of Austrian and Finnish CIS 3 results

This paper analyzes co-operative behavior of innovative firms in Finland and Austria. We use data from the third wave of the Community Innovation Survey (CIS 3). Descriptive statistics indicate that the rate of innovators is quite similar in Austria and Finland, while the number of co-operating enterprises is considerably higher in Finland. Econometric analysis reveals that a number of factors that determine co-operative arrangements are only significant in the one or the other country. We conclude that co-operative behavior in the two countries is much more dependent on national factors and much deeper rooted in the underlying innovation systems than the existing literature may assume.co-operation, CIS 3, Austria, Finland

A Conceptual Framework to Model Long-Run Qualitative Change in the Energy System

This paper deals with a conceptual framework allowing the analysis of long-run qualitative change in the energy system. The energy sector seems to be particularly appropriate for the analysis of qualitative change due to the following reasons: The energy sector is relevant for the development of the whole economy. When looking on the development of primary energy resources it becomes obvious that different energy sources are of different importance over time and that new energy sources enter the scene from time to time. E.g. the importance of wood is decreasing over last 200 years, whereas coal has reached its peak around the turn of the last century, natural gas entered the scene not before that time. Nuclear energy technologies emerge in the energy supply only after 1960s. Furthermore, compared to other sectors qualitative change in the energy sector proceeds in relative long time periods. Accordingly, different mechanisms and effects are comparatively easier to separate as not too many overlapping developments are considered to appear simultaneously, which makes the discrimination of causes and effects more difficult. Related to this, it is not invention that plays a particular important role but it is both innovation as the first commercial application and diffusion as the spreading out of the new technologies. This means that in the analysis strong technological uncertainty does play a minor role, most often the relevant technologies do already exist as blue-prints and the transformation process basically deals with the application and improvement of these technologies.energy; qualitative change; agend based models

Improving policy understanding by means of secondary analyses of policy evaluation : a concept development

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Analyzing Inefficiency Using a Frontier Search Approach

Efficiency measurement naturally requires the definition of a frontier as a benchmark indicating efficiency. Usually a measure reflecting the distance of a data point to the frontier indicates the level of efficiency. One of the crucial characteristics to distinguish efficiency measurement tools is the way in which they construct the frontier. The class of deterministic and non parametric tools of constructing the frontier mainly comprises of tools associated with Data Envelopment Analysis. Coming in various flavors all DEA frontiers suffer of their piecewise construction giving rise to numerous vertices. Those vertices do not allow convenient analysis of the frontier properties such as computing elasticities and the like. In this paper we want to contribute to the class of deterministic and non parametric tools of constructing the frontier in an one output and n input setting. We suggest a new empirical approach drawing on functional search in the fashion of Koza's (1992) genetic programming. The frontier search algorithm employed evolves the functional form of the frontier and the parameters simultaneously. The frontier exhibits the neat property that it is smooth and differentiable enabling the computation of elasticities,for example. In particular we introduce both the idea and the algorithm of the frontier search procedure. We discuss the advantages and shortcomings with respect to empirical problems. The arguments brought forth in the preceding sections are illustrated by the investigation of an artificial example.

Function and composition of the soil microbial community in calcareous grassland exposed to elevated atmospheric carbon dioxide

Terrestrial ecosystems generally respond to rising atmospheric carbon dioxide (CO2) concentrations with increased net primary productivity and increased water use efficiency. This may change the amount and quality of organic substances entering the soil and fuelling microbial metabolism. Soil microorganisms and their activity might also be affected by increased soil moisture at elevated CO2. This thesis was designed to analyse the response of the soil microbial community in a species-rich calcareous grassland in the Swiss Jura Mountains, which had been exposed to ambient and elevated CO2 concentrations (365 and 600 ppm) for six growing seasons. In the first study, laboratory incubation experiments were conducted to explore the relationship between litter quality under elevated carbon dioxide and enzymes involved in carbon cycling. Naturally senescent, mixed litter from the long-term field experiment was incubated with soil material for 10, 30 and 60 days. Soil samples were then obtained close to the litter layer using a microtome cutting device. Litter and soil samples were analysed for invertase and xylanase activity. The lower litter quality produced under elevated CO2, i.e. wider C/N ratio, yielded lower invertase and xylanase activities of litter. Litter addition stimulated activities in adjacent soil. Invertase activities of adjacent soil were not affected by litter quality, while soil xylanase activity was higher in soil compartments adjacent to litter from elevated CO2 plots. The reduced enzyme activities of litter produced under elevated CO2 can slow decomposition, at least during the initial stages. Since the effects of litter quality on enzyme activities in adjacent soil were small, we conclude that CO2-induced belowground C-inputs (e.g. increased root mass) and altered moisture conditions are more important controls of enzyme activities than altered litter quality. In the second study, functional diversity of the soil microbial community was assessed by analysing N-mineralisation and activities of enzymes of the C-, N-, P- and S-cycle of soil samples taken in spring and summer 1999, in the 6th season of CO2 exposure. In spring, N-mineralisation increased significantly by 30% at elevated CO2, while there was no significant difference between treatments in summer. The response of soil enzymes to CO2 enrichment was also more pronounced in spring, when alkaline phosphatase and urease activities were increased most strongly, by 32% and 21%, respectively. In summer, activity differences between CO2 treatments were greatest in the case of urease and protease (+21% and +17% at elevated CO2). The significant stimulation of N-mineralisation and enzyme activities at elevated CO2 was probably caused by higher soil moisture and/or increased root biomass. In the third study, soil microbial community structure of soil samples taken in spring and summer 1999 was analysed by means of PLFA profiles and 16S rDNA fingerprints obtained by PCR-DGGE. PLFA profiles were not affected by elevated CO2. Ordination analysis of DNA fingerprints revealed a significant relation between CO2 enrichment and variation in DNA fingerprints. This variation must be attributed to low intensity bands because dominant bands did not differ between treatments. Diversity of the bacterial community (number of bands in DNA fingerprints and Shannon indices) was not affected. The observed minute, but significant changes in the structure of the soil bacterial community might be caused by changes in the quality of rhizodeposits at elevated CO2. These could either result from altered rhizodeposition of individual plants or from altered species composition of the calcareous grassland.The 4th part of the thesis compiles data on soil microorganisms, soil fauna, soil structure and nitrogen cycle of calcareous grassland after CO2 exposure for six growing seasons. Microbial biomass, soil basal respiration and the metabolic quotient were not altered significantly. PLFA analysis revealed no significant shift in the ratio of fungi to bacteria. Protozoans, bacterivorous and fungivorous nematodes, acarians, collembolans, and root-feeding nematodes were not affected by elevated CO2. Total nematode numbers averaged slightly lower (-16%) and nematode mass was significantly reduced (by 43%) due to fewer large-diameter nematodes classified as omnivorous and predacious. CO2 exposure resulted in a shift towards smaller aggregate sizes; this was caused by higher soil moisture. Reduced aggregate sizes result in reduced pore neck diameters. This can confine the locomotion of large-diameter nematodes and possibly accounts for their decrease. The CO2 enrichment also affected the nitrogen cycle. N stocks in living plants and surface litter increased, but N in soil organic matter and microorganisms remained unaltered. N mineralisation increased considerably, but microbial N did not differ between treatments, indicating that net N immobilization rates were unaltered.Terrestrische Ökosysteme reagieren auf die gegenwärtige Erhöhung der atmosphärischen CO2-Konzentration mit Steigerung der Nettoprimärproduktion und verbesserter Effektivität der Wassernutzung. Dies kann dazu führen, dass sich Menge und Qualität der organischen Substanzen, die in den Boden gelangen und den heterotrophen Bodenmikroorganismen als Energiequelle dienen, verändern. Bodenmikroorganismen und ihre Aktivität können zudem durch die höhere Bodenfeuchte unter erhöhtem CO2 beeinflusst werden. Diese Dissertation hatte zum Ziel, die Reaktion der bodenmikrobiellen Gemeinschaft eines Kalkmagerrasens, der über sechs Vegetationsperioden mit CO2-angereicherter Luft (600 ppm) begast wurde, näher zu charakterisieren.Im ersten Teil der Dissertation wurde ein Laborexperiment durchgeführt, um den Einfluss der Streuqualität unter erhöhtem CO2 auf die Aktivität von Enzymen des C-Kreislaufes zu bestimmen. Hierzu wurde gemischte Streu mit Boden inkubiert, und Proben in unmittelbarer Nähe der Streu gewonnen. Die Invertase- und Xylanaseaktivität der Streu, die unter erhöhtem CO2 produziert wurde, war generell erniedrigt. Die Streuzugabe stimulierte die Enzymaktivitäten im angrenzenden Boden. Die Invertaseaktiviät im angrenzenden Boden wurde durch die Herkunft der Streu nicht beeinflusst, die Xylanaseaktivität wies jedoch höhere Werte bei Inkubation mit Streu aus der erhöhten-CO2-Variante auf. Die geminderten Enzymaktivitäten der Streu, die unter erhöhtem CO2 produziert wurde, können geringere Abbauraten im Initialstadium des Abbaus zur Folge habe. Da die Streuqualität insgesamt nur wenig Einfluss auf die Aktivitäten im direkt angrenzenden Boden hatte, sind für die Bodenenzymaktivitäten CO2-induzierte Änderungen der C-Einträge über die Wurzeln und das veränderte Feuchteregime vermutlich bedeutsamer als die Streuqualität.In der zweiten Studie wurde die funktionelle Diversität der Bodenmikroorganismen durch die Bestimmung der N-Mineralisation und der Aktivitäten von Enzymen der C-, N-, P- und S-Kreisläufe charakterisiert. Hierzu wurden Proben im Frühjahr und Sommer 1999 genommen. Unter erhöhtem CO2 war die N-Mineralisation im Frühjahr um 30% erhöht, während im Sommer kein signifikanter Anstieg zu verzeichnen war. Die Enzyme reagierten ebenfalls im Frühjahr stärker auf die CO2-Anreicherung als im Sommer, wobei die Aktivitäten der Alkalischen Phosphatase und Urease unter erhöhtem CO2 am stärksten gesteigert waren (+32% bzw. +21%). Im Sommer waren die Unterschiede zwischen den CO2-Varianten für Urease (+21%) und Protease (+17%) am größten. Die signifikante Steigerung der N-Mineralisation und der Enzymaktivitäten kann man auf die höhere Bodenfeuchte und die größere Wurzelmasse unter erhöhtem CO2 zurückführen. Im dritten Teil der Arbeit wurden die bodenmikrobielle Gemeinschaftsstruktur der Proben aus dem Frühjahr und Sommer 1999 mittels PLFA-Mustern und DGGE-Profilen der 16S rDNA charakterisiert. Die PLFA-Muster wurden durch die CO2-Anreicherung nicht beeinflusst. Eine Ordinationsanalyse der DNA-Profile zeigte, dass es im Fall der Sommer-Proben eine signifikante Beziehung zwischen CO2-Anreicherung und Variation in den DNA-Profilen gab. Diese Variation muss allerdings Banden mit geringer Intensität zugeschrieben werden, da sich die dominanten Banden zwischen den Varianten nicht unterschieden haben. Die geringen, aber signifikanten Effekte in der bakteriellen Gemeinschaftsstruktur wurden möglicherweise durch qualitative Änderungen der Rhizodeposition, resultierend entweder aus einer veränderte Rhizodeposition einzelner Pflanzenarten oder aber aus der veränderten Artenzusammensetzung, hervorgerufen.Der vierte Teil besteht aus einer Synthese von Daten zu Mikroorganismen, Bodenfauna, Bodenstruktur und N-Kreislauf nach 6 Jahren CO2-Anreicherung des Kalkmagerrasens. Mikrobielle Biomasse, Basalatmung, metabolischer Quotient und das Pilz/Bakterien-Verhältnis zeigten keine signifikante Änderung unter erhöhtem CO2. Protozoen, bakterivore und fungivore Nematoden, Milben und Collembolen, und wurzelfressenden Nematoden wurden ebenfalls nicht beeinflusst. Die Gesamtindividuenzahl der Nematoden war allerdings etwas erniedrigt unter erhöhtem CO2 (-16%), ihre Biomasse war signifikant um 43% reduziert. Dies ist auf den Rückgang der omnivoren und räuberischen Nematoden mit einem großen Körperdurchmesser zurückzuführen. Die CO2-Anreicherung bewirkte eine Verschiebung zu kleineren Aggregatgrößen, vermutlich verursacht durch die erhöhte Bodenfeuchte. Kleinere Aggregatgrößen bedingen geringere Porendurchmesser, was die Bewegung großer Nematoden einschränken kann. Die CO2-Anreicherung beeinflusste auch den N-Kreislauf: die N-Vorräte in Pflanzen und Streu nahmen unter erhöhtem CO2 zu, während die N-Vorräte in der bodenorganischen Substanz und den Mikroorganismen gleich blieben. Obwohl die N-Mineralisation zeitweise stark erhöht war, unterlag der mikrobielle N keiner Veränderung, so dass die netto N-Immobilisierungsraten vermutlich unverändert blieben

Product Innovation and Population Dynamics in the German Insurance Market

Empirical research in organizational ecology has mainly focused on analyzing founding and mortality rates using life history data of the organizations. We try to extend this approach in our study in a number of ways. In contrast to most empirical studies in organizational ecology, we chose a population of service organizations, in particular the German insurance companies, the development dynamics of which are rather obvious in the innovative activities of existing organizations than in founding activities. We further discuss the points of contact between the organizational ecology approach and the theory of industry life cycles and extend the analysis to the relationship between innovative activities and population dynamics. The study examines the effects of population density, former events, and organizational size and age structure in the population of property & casualty insurance companies on the number of product innovations generated. We will further develop a concept for an insurance specific industry life cycle with a non-typical maturation and degeneration phase.service industries; population ecology; industry life cycles

The Devil Dwells in the Tails A Quantile Regression Approach to Firm Growth

This paper explores the firm growth rate distribution in a Gibrat’s Law context. The aim is to provide an empirical exploration of the determinants of firm growth. The work is novel in two respects. First, rather than limiting the analysis to focus on the conditional mean growth level, we investigate the complete shape of the distribution. Second, we show that the differences in the firm growth rate process between large and small firms are highly circumstantial. That industry dynamics have a substantial influence on the relationship between firm size and firm growth. The data used includes more than 9000 Danish firms from manufacturing, services and construction. We provide robust evidence indicating that firm growth studies should be less obsessed with explaining means and instead look to other parts of the firm growth rate distribution.Firm growth; quantile regression; distribution shape

Do direct R&D subsidies lead to the monopolization of R&D in the economy?

This paper explores the impact of R&D subsidies on the concentration of R&D in an economy. First, governments are often criticized of subsidizing predominantly larger firms and thus contribute to persistence of leadership in markets and higher barriers to entry, and, hence, reduced competition eventually. Second, theoretical literature, such as endogenous growth literature, has also shown that governmental intervention in the market for R&D affects the distribution of R&D which finally affects product market concentration. We test the relationship between R&D subsidies and R&D concentration employing treatment effects models on data of German and Finnish manufacturing firms. The data and estimations allow calculating concentration indices for the population of firms for both the actual situation where some selected companies receive R&D subsidies and the counterfactual situation describing the absence of subsidies. We find that R&D subsidies do not lead to higher concentration of R&D. On the contrary, we even find that R&D concentration is significantly reduced because of subsidies. This result may be attributed to the fact that technology policy maintains special funding schemes for small and medium-sized companies. The fact that the larger companies benefit from a higher likelihood of a subsidy receipt is offset by the phenomenon that smaller firms may be completely deterred from any R&D activity if they would not receive governmental support