Access to Government Support for Innovation — Empirical Evidence From the Ruhr Area in Germany

2021 ◽  
Vol 29 (02) ◽  
pp. 161-182
Author(s):  
Fritz Rettberg ◽  
Peter Witt
Keyword(s):  
Market Failure ◽  
Public Support ◽  
Government Support ◽  
Research Institutions ◽  
Private Companies ◽  
Ruhr Area ◽  
Consulting Services ◽  
Innovation Activities ◽  
German Region ◽  
Innovation Support

Governments all over the world support innovation activities in private companies with several different programs. Typical measures are R&D subsidies, consulting services, incubator facilities, opportunities for networking, and subsidized loans. From an economic perspective, public support for innovations may help to compensate for market failure. But government support encounters the risk of being neither effective nor efficient. Furthermore, the ability of a company to successfully apply for public innovation support programs depends on the amount of administrative resources it already is equipped with, i.e. its size and its existing relationships with research institutions. In this paper, we look at public support for private companies in one specific German region, the Ruhr area. We use a sample of 74 companies, all of which engage in R&D activities and have already filed patents. Our findings show that firms need a minimum company size to be able to successfully apply for public innovation support. Furthermore, we show that an existing cooperation with research institutions makes access to public support measures easier. We also find that public innovation support indeed improves the patent position of companies.

scholarly journals The Role of Public Support for Innovativeness in SMEs Across European Countries and Sectors of Economic Activity

2020 ◽  
Vol 12 (10) ◽  
pp. 4143
Author(s):  
Wojciech Grabowski ◽  
Anna Staszewska-Bystrova
Keyword(s):  
European Union ◽  
Small And Medium Enterprises ◽  
Public Support ◽  
The European Union ◽  
Community Innovation Survey ◽  
Innovation Activities ◽  
Policy Mixes ◽  
The Impact ◽  
Innovation Support ◽  
The Eu

The paper investigates the impact of public support for innovation activities on adoption of different innovation strategies and propensities to introduce product, process, organizational and marketing innovations in European small and medium enterprises. In estimating these effects, country and sectoral heterogeneities are taken into account. Effectiveness of alternative policy mixes is also evaluated. The analysis is based on a multivariate, multi-stage econometric model and data from the Community Innovation Survey 2014. It is found that innovation support is utilized differently by newer and older members of the European Union, with the former investing mainly in acquisition of machinery, equipment, software, buildings, knowledge and trainings and the latter directing aid, to a larger extent, to research and development and introduction of innovations. The results also indicate various effectiveness of support from alternative institutional sources. Aid from the EU is more beneficial for manufacturing, while national and local support is more effective in older EU countries than newer members of the European Union and services sector. Using various but not all types of policy mixes is estimated to increase the chances of innovating. It is concluded that innovation support might not be optimally used in newer members of the EU and that better coordination of aid from the EU and national institutions could lead to improved economic results.

scholarly journals The Influence of Public Support for Innovations on the Economic Performance of Enterprises

2021 ◽  
Vol 7 (1) ◽  
pp. 323-331
Author(s):  
Viktorie Klímová ◽  
Vladimir Žítek ◽  
Tereza Lelková
Keyword(s):  
Economic Performance ◽  
Public Support ◽  
Research Attention ◽  
Development Fund ◽  
Creative Commons ◽  
European Regional Development Fund ◽  
Innovation Activities ◽  
Support For Innovation ◽  
Innovation Support ◽  
European Regional

The paper aims to assess how public support for innovation activities influences the economic performance of Czech companies. In the framework of the research, attention was paid to more than 600 Czech companies that received support to start their innovation activities. The analysis was performed on the case of the Innovation Program, which was co-financed by the European Regional Development Fund. The Innovation Program is the largest Czech program for innovation support and mainly supports the launching of technological innovations in practice. The detailed analysis included 214 defined enterprises, for which all necessary information was available. The research analyzed the turnover of companies before obtaining support and after the implementation of the project. The research results show how the grant affects different size categories of enterprises and how the effect of the aid varies across sectors of the national economy. This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.

scholarly journals Strengthening the Innovation Resilience of Polish Manufacturing Firms in Unstable Environments

2021 ◽  
Author(s):  
Anna Wziątek-Kubiak ◽  
Marek Pęczkowski
Keyword(s):  
Public Support ◽  
Probit Model ◽  
Manufacturing Firms ◽  
Community Innovation Survey ◽  
Innovation Activities ◽  
Turbulent Times ◽  
Unstable Environment ◽  
Innovative Resources ◽  
Accuracy Of Prediction ◽  
Second Period

AbstractThis study examines factors that increase resilience in innovation of Polish manufacturing firms in an unstable environment. Organizational resilience in innovation is the ability to continuously perform innovation in a turbulent environment and increase knowledge accumulation. In 2008–2012, Poland did not have crisis itself. Short-term slowdown of the economy was accompanied by a breakdown of innovation activities, with a medium-term effect. Based on the Polish Community Innovation Survey panel data for two periods: the innovation crisis (2008–2010), and the innovation pessimism period (2010–2012), this study shows which innovative resources change the probability of innovation continuity in the second period. In our probit model, we explore 42 factors of innovations. We found that financing, R&D and marketing increased the probability of continuity of innovation, but the influence of financing was the strongest. Persistence in innovation in turbulent times hence requires a change in the structure of innovation resources used. Due to the fact that public support on innovation did not increase the likelihood of the continuity of the innovation, a policy change is required. Reliability of our estimation is confirmed by accuracy of prediction of firms, which was 78.2%.

scholarly journals INVESTMENTS IN THE DEVELOPMENT OF INNOVATIVE MANAGEMENT IN THE COMPANY

2018 ◽  
Vol 4 (4) ◽  
pp. 87-92
Author(s):  
Natalia Germanjuk
Keyword(s):  
Direct Action ◽  
The State ◽  
Government Support ◽  
Innovation Activity ◽  
State Support ◽  
Positive Direction ◽  
Innovation Activities ◽  
Innovative Management ◽  
The Subject ◽  
The Innovative Management

The subject of research. This article determines that in conditions of global transformational processes, the sphere of innovation activity becomes of particular importance in the economy of advanced countries. Its development provides socio-economic growth of local companies and a state, in general, requiring significant financial resources. Consequently, the subject of this study is the management of innovation activities at the enterprise with the achievement of maximum effectiveness, as well as the identification of interconnection between innovations and investments. Methodology. Conducted research shows, the condition of development of domestic technologies is unsatisfactory: Ukraine occupies the last place among European countries. Innovative activity is associated with investments, whose government support in our country is rather small in the context of the state’s GDP. Content analysis is carried out on materials of works of domestic and foreign scientists using information from Ukrainian legislation and statistical data provided by experts. In the process of preparing the paper, the following general scientific methods of research are used: logical analysis, observation, formalization, synthesis, abstraction. The purpose of a study is to analyse the nature of the innovation activity of companies, to establish its unbiased relationship with investment processes in order to identify areas for improving the innovation and investment situation in Ukraine. Important is to substantiate the expediency of improving the innovative management of Ukrainian enterprises in the focus of implementation of new projects by finding the necessary sources of financing. As a result – effective management of the company is capable of satisfying consumer demands and increase profits. Conclusions. Thus, the analysis of the relationship between innovations and investments has shown that the situation in Ukraine is characterized by a deficit of state support in the investment and innovation sector, and difficulties in attracting finance. The latter is directly related to the political situation, instability, the lack of clear legislative rules of direct action, as well as insignificant pay for the work of inventors. At the same time, the positive direction of innovation development in Ukraine is the tendency to increase venture companies (with the use of foreign experience), which directly provides investment in the latest local finds. Improving the investment and innovation situation in Ukraine is possible by creating a set of incentives for attracting investment, further investing in human capital, raising wages for researchers; growth of inflow of foreign investments; providing tangible state support to enterprises and more favourable lending conditions for them, etc. It is important to ensure transparency of legislation, to perfect the conditions of functioning of business space and the state of market infrastructure, to take measures to improve the state of the environment.

UK policy for the conservation and rural economy of the hills and uplands

1994 ◽  
Vol 18 ◽  
pp. 1-5
Author(s):  
G. F. Waters
Keyword(s):  
Rural Economy ◽  
Social Issues ◽  
Public Support ◽  
Vital Role ◽  
Government Support ◽  
Environmental Benefit ◽  
Economic Support ◽  
The Government ◽  
Hill Farming ◽  
Grant Scheme

AbstractThere has been a long history, nearly 50 years, of support by the government for farming in the upland areas and the modern schemes continue the essential features of support that have been developed over the years. However the justification for the support has changed with time, from maximizing production to more social issues. It is now being recognized that the hill farmer's efforts have helped create and maintain one of our most attractive national assets and it is this environmental benefit which increasingly provides much of the justification for continued public support for hill farming. So the government's policies are important in two respects: the vital rôle of economic support and the encouragement of farmers to manage their land with greater concern for the environment.On the economic front, one of the most important ways that support is provided to upland farming is through HLCAs. Also vitally important are the EC sheepmeat regime and the changes made to that regime and the EC beef regime in the recent CAP reform settlement.The government's encouragement of farmers to manage their land with greater concern for the environment is increasing in importance and there are a number of ways in which this encouragement is delivered. The government has built on the success of Environmentally Sensitive Areas. As well as ESAs, there are other schemes available to farmers such as the Farm and Conservation Grant Scheme. In addition, an opportunity to develop a coherent framework for the delivery of a number of environmental schemes has presented itself as a result of the CAP reform. However, Government support should not be thought of as the only source of extra income for hill farmers. The farmer and the farmer's family should use every opportunity open to them to maximize their income.

Tržní selhání na regionálním trhu parkování

2021 ◽  
Author(s):  
Petr Halámek ◽  
Martin Šauer
Keyword(s):  
Market Share ◽  
Imperfect Competition ◽  
Market Failure ◽  
Public Support ◽  
Walking Distance ◽  
Parking Space ◽  
Dominant Position ◽  
Key Factor ◽  
Parking Garages ◽  
The City

The aim of the paper is to verify the existence of a market failure in the parking market in the city of Brno with regard to the possibility of providing public support for the construction or operation of parking garages. The paper deals with only one of the signs of market failure, which is the demonstration of imperfect competition. The existence of imperfect competition is conditioned by the dominant position on the market (market share of at least 40%). The market is defined on the basis of walking distance as a key factor for the use of a parking space and on the basis of the categorization of individual types of parking spaces (especially with regard to street parking and parking in car parks and parking garages and P + R parking). The performed analysis did not confirm the existence of imperfect competition on the parking market in the central part of the city of Brno.

scholarly journals Does Government Support Respond to Governments’ Social Welfare Rhetoric or their Spending? An Analysis of Government Support in Britain, Spain and the United States

2017 ◽  
Vol 49 (4) ◽  
pp. 1407-1429 ◽  
Author(s):  
Luca Bernardi ◽  
James Adams
Keyword(s):  
United States ◽  
Social Welfare ◽  
Public Support ◽  
The United States ◽  
Government Support ◽  
Right Wing ◽  
Left Wing ◽  
Cross Sectional ◽  
Welfare Spending ◽  
Left And Right

Issue ownership theory posits that when social welfare is electorally salient, left-wing parties gain public support by rhetorically emphasizing social welfare issues. There is less research, however, on whether left-wing governing parties benefit from increasing social welfare spending. That is, it is not known whether leftist governments gain from acting on the issues they rhetorically emphasize. This article presents arguments that voters will not react to governments’ social welfare rhetoric, and reviews the conflicting arguments about how government support responds to social welfare spending. It then reports time-series, cross-sectional analyses of data on government support, governments’ social welfare rhetoric and social welfare spending from Britain, Spain and the United States, that support the prediction that government rhetoric has no effects. The article estimates, however, that increased social welfare spending sharply depresses support for both left- and right-wing governments. These findings highlight a strategic dilemma for left-wing governments, which lose public support when they act on their social welfare rhetoric by increasing welfare spending.

Adoption of environmental assurance in pastoral industry supply chains - market failure and beyond

2007 ◽  
Vol 47 (3) ◽  
pp. 233 ◽  
Author(s):  
L. I. Pahl
Keyword(s):  
Supply Chains ◽  
Financial Incentives ◽  
General Public ◽  
Market Failure ◽  
Government Support ◽  
Environmental Benefits ◽  
Social Production ◽  
End User ◽  
National Environmental ◽  
Assurance Scheme

This paper describes adoption rates of environmental assurance within meat and wool supply chains, and discusses this in terms of market interest and demand for certified ‘environmentally friendly’ products, based on phone surveys and personal interviews with pastoral producers, meat and wool processors, wholesalers and retailers, and domestic consumers. Members of meat and wool supply chains, particularly pastoral producers, are both aware of and interested in implementing various forms of environmental assurance, but significant costs combined with few private benefits have resulted in low adoption rates. The main reason for the lack of benefits is that the end user (the consumer) does not value environmental assurance and is not willing to pay for it. For this reason, global food and fibre supply chains, which compete to supply consumers with safe and quality food at the lowest price, resist public pressure to implement environmental assurance. This market failure is further exacerbated by highly variable environmental and social production standards required of primary producers in different countries, and the disparate levels of government support provided to them. Given that it is the Australian general public and not markets that demand environmental benefits from agriculture, the Australian government has a mandate to use public funds to counter this market failure. A national farm environmental policy should utilise a range of financial incentives to reward farmers for delivering general public good environmental outcomes, with these specified and verified through a national environmental assurance scheme.

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