Do R&D subsidies matter? Evidence for the German service sector

In recent times the service sector is often called the driving force of today?s economies. This paper analyses the innovative activities of German service firms. We investigate whether firms that receive public subsidies for innovation projects engage more in innovative activities than others. Additionally, we test the hypothesis that innovative firms are more likely to get public grants in the future. Empirically, it turns out that public grants raise the firms? privately financed innovative activities. The more grants a firm has received in the past, the more it invests in current innovation projects. Furthermore, innovating firms are more likely to have future access to public grants. Additionally, the share of university graduates of firms' total employees is an important factor for future participation in public R&D schemes. --Innovation,Public R&D Subsidies,Service Sector,Policy Evaluation

Does R&D-infrastructure attract high-tech start-ups?

Our research, based on the ZEW-Foundation Panel East, examines whether high-tech start-ups are mainly founded in scientific and infrastructural well suited regions or not. Estimation results on the level of postcode areas confirm the hypothesis that specific human capital, knowledge spillovers at higher-education institutions are more important for founding a firm in one of the high-tech sectors compared with the effects of other publicly financed institutions. The existence of large companies in the manufacturing sector has a considerable effect for start-up activities in this region in general. Moreover, high-tech start-ups are more concentrated within or near technology and foundation centres. --High Technology Industries,Eastern Germany,Start-ups,entrepreneurs

Synthesis and late-stage functionalization of complex molecules through C-H fluorination and nucleophilic aromatic substitution.

We report the late-stage functionalization of multisubstituted pyridines and diazines at the position α to nitrogen. By this process, a series of functional groups and substituents bound to the ring through nitrogen, oxygen, sulfur, or carbon are installed. This functionalization is accomplished by a combination of fluorination and nucleophilic aromatic substitution of the installed fluoride. A diverse array of functionalities can be installed because of the mild reaction conditions revealed for nucleophilic aromatic substitutions (S(N)Ar) of the 2-fluoroheteroarenes. An evaluation of the rates for substitution versus the rates for competitive processes provides a framework for planning this functionalization sequence. This process is illustrated by the modification of a series of medicinally important compounds, as well as the increase in efficiency of synthesis of several existing pharmaceuticals

Against the one-way-street: Analyzing knowledge transfer from industry to science

This study aims at analyzing the differences in the factors that influence the probability of knowledge transfer within industry and from industry to science in the biotechnology sector. In order to model these knowledge flows a citation analysis on the basis of patent data was conducted and a weighted bivariate probit model was estimated on the citation probability of industry and science on the basis of a combined sample of citing and cited patent pairs and an equal number of control patent pairs. The empirical results suggest that there are considerable differences in the citation probability. Cultural closeness for instance has a positive effect on the citation probability from industry to industry while the citation probability of scientific institutions is not affected by cultural distance. --Technology transfer,patent citation analysis,biotechnology industry

Do Innovation Subsidies Crowd Out Private Investment? Evidence from the German Service Sector

This paper analyses the impact of public innovation subsidies on private innovation expenditure. In the empirical economic literature there is still no common support for the hypothesis of either a complementary or a substitutive relationship between public funding and private investment. We investigate whether firms of the German service sector increase their innovation effort when participating in public policy schemes. Cross-sectional data at the firm level are used to estimate the effect of subsidization. Applying a non-parametric matching approach we find evidence that the hypothesis of complete crowding-out effects between public and private funds can be rejected. --Innovation,Public Innovation Subsidies,Service Sector,Policy Evaluation

Informal university technology transfer: a comparison between the United States and Germany

Existing literature has confined university technology transfer almost exclusively to formal mechanisms, like patents, licenses or royalty agreements. Relatively little is known about informal technology transfer that is based upon interactions between university scientists and industry personnel. Moreover, most studies are limited to the United States, where the Bay-Dole-Act has shaped the institutional environment since 1980. In this paper, we provide a comparative study between the United States and Germany where the equivalent of the Bay-Dole-Act has come into force only in 2002. Based on a sample of more than 800 university scientists, our results show similar relationships for the United States and Germany. Faculty quality which is however based on patent applications rather than publications serves as a major predictor for informal technology transfer activities. Hence, unless universities change their incentives (e.g., patenting as one criterion for promotion and tenure) knowledge will continue to flow out the backdoor. --informal university technology transfer, cross-country comparison

Detecting Behavioural Additionality: An Empirical Study on the Impact of Public R&D Funding on Firms' Cooperative Behaviour in Germany

Subsidising research networks has become a popular instrument in technology policies, driven mainly by expected positive spillovers. In particular, the stimulation of R&D co-operation between scientific institutions and industry is considered as most promising. In the context of policy evaluation we analyse if public R&D funding is suitable for influencing firms' collaborative behaviour in the intended way and where applicable, if a lasting change results. The empirical analysis is based on German CIS data and a supplemental telephone survey. Using a nearest-neighbour matching approach we find that R&D funding is indeed a particularly valuable tool for the linking of science into industry R&D partnerships. However, we also show in a bivariate probit analysis that newly initiated R&D co-operations with science are less likely to be continued after funding has ended compared to already existing co-operations. Therefore, the behavioural change induced by public funding is not necessarily longlived. --Public Funding,Firm Behaviour,Policy Evaluation,R&D Co-operation

Detecting Behavioural Additionality: An Empirical Study on the Impact of Public R&D Funding on Firms' Cooperative Behaviour in Germany

Subsidising research networks has become a popular instrument in technology policies, driven mainly by expected positive spillovers. In particular, the stimulation of R&D co-operation between scientific institutions and industry is considered as most promising. In the context of policy evaluation we analyse if public R&D funding is suitable for influencing firms' collaborative behaviour in the intended way and where applicable, if a lasting change results. The empirical analysis is based on German CIS data and a supplemental telephone survey. Using a nearest-neighbour matching approach we find that R&D funding is indeed a particularly valuable tool for linking science into industry R&D partnerships. However, we also show in a bivariate probit analysis that newly initiated R&D co-operations with science are less likely to be continued after funding has ended compared to already existing cooperations. Therefore, the behavioural change induced by public funding is not necessarily long-lived. --Public Funding,Firm Behaviour,Policy Evaluation,R&D Co-operation

International Scientist Mobility and the Locus of Technology Transfer

University technology transfer has attracted considerable attention in the literature with a focus on the institutions, the agents involved in technology commercialisation or the differentiation between formal and informal technology transfer mechanisms. There has, however, been little systematic research on how the mobility of university scientists influences their propensity to engage in technology transfer activities and, particularly, on how mobility influences the locus of such activities. This paper therefore analyses the link between university scientists' technology transfer activities and their international mobility patterns. We characterise scientist mobility along the two dimensions frequency' and intensity' resulting in an individual mobility pattern. We argue that the mobility pattern as well as the scientist's personal characteristics affects the likelihood whether a transfer of technology occurs to a firm in the scientist's home and/or host country. Based on a sample of more than 500 German university scientists, our results indicate that a substantial share of scientists engages in technology transfer both to the home as well as to the host country. There are, however, considerable differences regarding the factors influencing the locus of technology transfer. --scientist mobility,university technology transfer,internationalisation

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