Papers in Evolutionary Economic Geography

May 13, 2015

# 15.14 Another cluster premium: Innovation subsidies and R&D collaboration networks

Filed under: 2015 — Tags: , , , , — mattehartog @ 6:40 pm

Tom Broekel, Dirk Fornahl & Andrea Morrison

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This paper investigates the allocation of R&D subsidies with a focus on the granting success of firms located in clusters. On this basis it is evaluated whether firms in these clusters are differently embedded into networks of subsidized R&D collaboration than firms located elsewhere. The theoretical arguments are empirically tested using the example of the German biotechnology firms’ participation in the 6th EU-Framework Programmes and national R&D subsidization schemes in the early 2000s. We show that clusters grant firms another premium to their location, as they are more likely to receive funds from the EU-Framework Programmes and hold more favourable positions in national knowledge networks based on subsidies for joint R&D.

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