Long-Run Effects of Public-Private Research Joint Ventures: The Case of the Danish Innovation Consortia Support Scheme

39 Pages Posted: 25 Sep 2011

See all articles by Ulrich Kaiser

Ulrich Kaiser

University of Zurich; ZEW – Leibniz Centre for European Economic Research; University of Copenhagen - Centre for Industrial Economics; Government of the Kingdom of Denmark - Centre for Economic and Business Research

Johan Kuhn

Copenhagen Business School

Abstract

Subsidized research joint ventures (RJVs) between public research institutions and industry have become increasingly popular in Europe and the US. We study the long-run effects of such a support scheme that has been maintained by the Danish government since 1995. To cope with identification problems we apply nearest neighbor caliper matching and conditional difference-in-difference estimation methods. Our main findings are that (i) program participation effects are instant for annual patent applications and last for three years, (ii) employment effects materialize first after one year and (iii) there are no statistically significant effects on value added or labor productivity. We further show that these overall results are primarily driven by firms that were patent active prior to joining the RJV and that there are no statistically significant effect for large firms. Both types of firms are disproportionally represented in the support program we study.

Keywords: public-private partnership, research joint venture, research and development, research subsidies

JEL Classification: O31, O38

Suggested Citation

Kaiser, Ulrich and Kuhn, Johan, Long-Run Effects of Public-Private Research Joint Ventures: The Case of the Danish Innovation Consortia Support Scheme. IZA Discussion Paper No. 5986, Available at SSRN: https://ssrn.com/abstract=1933343 or http://dx.doi.org/10.2139/ssrn.1933343

Ulrich Kaiser

University of Zurich ( email )

Rämistrasse 71
Zürich, CH-8006
Switzerland

ZEW – Leibniz Centre for European Economic Research ( email )

P.O. Box 10 34 43
L 7,1
D-68034 Mannheim, 68034
Germany

University of Copenhagen - Centre for Industrial Economics ( email )

University of Copenhagen, Building 26
Øster Farimagsgade 5
Copenhagen K., DK-1353
Denmark

Government of the Kingdom of Denmark - Centre for Economic and Business Research ( email )

Langelinie Alli 17
DK-2100 Copenhagen
Denmark

Johan Kuhn

Copenhagen Business School ( email )

Solbjerg Plads 3
Frederiksberg C, DK - 2000
Denmark

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