Papers in Evolutionary Economic Geography

December 11, 2010

# 10.17 Do Cooperative R&D Subsidies Stimulate Regional Innovation Efficiency? Evidence from Germany

Tom Broekel


The paper investigates the impact of R&D subsidies on regional innova- tion efficiency. Building on a rich panel data set covering 270 German labor market regions and four industries, it is particularly shown that subsidies for R&D cooperation are a suitable policy measure for stimulating the in- novation efficiency of regions. The empirical findings moreover suggest that regions with low innovation capacities benefit from subsidized inter-regional cooperation involving partners with diverse industrial and sectoral back- grounds. Establishing inter-regional cooperation that give access to related knowledge and skills is more important for regions with large innovation capacities.



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