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Industry–research co‐operation within and across regional boundaries. What does innovation policy add?
Author(s) -
Marzucchi Alberto,
Antonioli Davide,
Montresor Sandro
Publication year - 2015
Publication title -
papers in regional science
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.937
H-Index - 64
eISSN - 1435-5957
pISSN - 1056-8190
DOI - 10.1111/pirs.12079
Subject(s) - subsidy , propensity score matching , regional policy , matching (statistics) , business , subject (documents) , public economics , economics , industrial organization , political science , market economy , computer science , statistics , mathematics , library science , law
Abstract The paper aims to show how regional policy‐makers can stimulate firms' co‐operation with research organizations by granting an R & D subsidy. Using an original dataset for the Italian region of E milia‐ R omagna, propensity score matching is first applied to identify the impact of the subsidy received. A generalized propensity score technique is then employed to investigate the effect of an increasing amount of support. The firm's co‐operation is policy sensitive. The award of a subsidy to regional firms affects their intra‐regional more than their extra‐regional co‐operation. The propensity toward the latter appears subject to a monetary effect and is influenced by the amount of public funding received providing the subsidy overcomes a minimum threshold.