The contribution of innovation actors into business R&D funding – does the substitution effect of public support work in the EU?

Simple item page
dc.contributor.authorPisár, Peter
dc.contributor.authorĎurčeková, Ina
dc.contributor.authorStachová, Mária
dc.contributor.otherEkonomická fakultacs
dc.date.accessioned2020-04-06T13:38:24Z
dc.date.available2020-04-06T13:38:24Z
dc.description.abstractInnovation and R&D are becoming a prominent part of policies of countries and transnational unions such as the European Union. This is shown in strategy “Europe 2020” established by EU which prompts member states to invest 3 % of their GDP in R&D. R&D expenditure is an important indicator of innovation performance of a country. However, it is not only important to look at R&D expenditure as one aggregate indicator, but to also consider the contributions of various innovation actors to R&D funding. Since firms are known to be the main innovation actor that creates the biggest amount of innovation in national innovation system, the paper is focused on financing of business R&D. The aim of the paper is to examine business R&D funding from resources of main innovation actors and to analyze the impact of public support of R&D on private R&D investment in EU member states. The research is based on descriptive statistics as well as panel regression and correlation analysis and cluster analysis of 28 EU member states. Our results suggest that the main source used to fund business R&D comes from business sector, followed by public support and resources from abroad. The cluster analysis resulted in four clusters based on the structure of business R&D financing in the EU countries. The analysis of substitution effect of public support of R&D suggests that public support has a positive effect on private investment in business R&D, with the raise of public support for business R&D of 0.1011 % GDP resulting in 1 % increase in business funded R&D expenditure.en
dc.formattext
dc.identifier.doi10.15240/tul/001/2020-1-009
dc.identifier.eissn2336-5604
dc.identifier.issn1212-3609
dc.identifier.urihttps://dspace.tul.cz/handle/15240/154705
dc.language.isoen
dc.publisherTechnická Univerzita v Libercics
dc.publisherTechnical university of Liberec, Czech Republicen
dc.publisher.abbreviationTUL
dc.relation.isbasedonAbidin, I., Rani, A. A., Hamid, M. R. A., & Zainuddin, Y. (2014). University-Industry Collaboration, Firm Performance and Stakeholder Theory. International Journal of Contemporary Business Management, 1(1), 41–51.
dc.relation.isbasedonAfcha, S., & López, G. L. (2014). Public funding of R&D and its effect on the composition of business R&D expenditure. BRQ Business Research Quarterly, 17(1), 22–30. https://doi.org/10.1016/j.cede.2013.01.001
dc.relation.isbasedonAkcali, B. Y., & Sismanoglu, E. (2015). Innovation and the Effect of Research and Development (R&D) Expenditure on Growth in Some Developing and Developed Countries. Procedia – Social and Behavioral Sciences, 195, 768–775. https://doi.org/10.1016/j.sbspro.2015.06.474
dc.relation.isbasedonAkis, E. (2015). Innovation and Competitive Power. Procedia – Social and Behavioral Sciences, 195, 1311–1320. https://doi.org/10.1016/j.sbspro.2015.06.304
dc.relation.isbasedonAli-Yrkkö, J. (2005). Impact of Public R&D Financing on Private R&D. Does Financial Constraint Matter? (Working Paper No. 30/February 2005). Brussels: European Network of Economic Policy Research Institutes. Retrieved March 15, 2019, from http://aei.pitt.edu/6736/1/1195_30.pdf
dc.relation.isbasedonAristei, D., Sterlacchini, A., & Venturini, F. (2015). The effects of public supports on business R&D: firm-level evidence across EU countries (MPRA Paper 64611). University Library of Munich, Germany. Retrieved December 12, 2018, from http://www.siecon.org/online/wp-content/uploads/2015/10/Sterlacchini.pdf
dc.relation.isbasedonArrow, K. J. (1962). Economic Welfare and the Allocation of Resources for Invention. In The Rate and Direction of Inventive Activity: Economic and Social Factors, (pp. 609–626). Princeton, NJ: Princeton University Press.
dc.relation.isbasedonBakker, G. (2013). Money for nothing: How firms have financed R&D-projects since the Industrial Revolution. Research Policy, 42(10), 1793–1814. https://doi.org/10.1016/j.respol.2013.07.017
dc.relation.isbasedonCapron, H., & van Pottelsberghe de la Potterie, B. (1997). Public support to business R&D: a survey and some new quantitative evidence. In Policy Evaluation in Innovation and Technology – towards best practices, (pp. 171–187). Brussels: Université Libre de Bruxelles.
dc.relation.isbasedonCarboni, O. A. (2017). The effect of public support on investment and R&D: An empirical evaluation on European manufacturing firms. Technological Forecasting & Social Change, 117, 282–295. https://doi.org/10.1016/j.techfore.2016.11.017
dc.relation.isbasedonCiocanel, A. B., & Pavalescu, F. M. (2015). Innovation and competitiveness in European context. Procedia Economics and Finance, 32, 728–737. https://doi.org/10.1016/S2212-5671(15)01455-0
dc.relation.isbasedonD’Este, P., Iammarino, S., Savona, M., & von Tunzelmann, N. (2012). What hampers Innovation? Revealed barriers versus deterring barriers. Research Policy, 41(2), 483–488. https://doi.org/10.1016/j.respol.2011.09.008
dc.relation.isbasedonDavid, P. A., Hall, B. H., & Toole, A. A. (1999). Is Public R&D a Complement or Substitute for Private R&D? A Review of the Econometric Evidence (Working Paper No. 7373). Cambridge, MA: National Bureau of Economic Research. Retrieved January 18, 2019, from https://www.nber.org/papers/w7373.pdf
dc.relation.isbasedonDistanont, A., & Khongmalai, O. (2018). The role of innovation in creating a competitive advantage. Kasetsart Journal of Social Sciences, 1–7. https://doi.org/10.1016/j.kjss.2018.07.009
dc.relation.isbasedonDodgson, M., Hughes, A., Foster, J., & Metcalfe, S. (2011). System thinking, market failure, and the development of innovation policy: The case of Australia. Research Policy, 40(9), 1145–1156. https://doi.org/10.1016/j.respol.2011.05.015
dc.relation.isbasedonEdquist, C. (2006). Systems of Innovation: Perspectives and Challenges. In J. Fagerberg, D. C. Mowery (Ed.), The Oxford Handbook of Innovation (pp. 181–208). Oxford: Oxford University Press. https://doi.org/10.1093/oxfordhb/9780199286805.003.0007
dc.relation.isbasedonEggink, M. (2013). The Components of Innovation System: A Conceptual Innovation System Framework. Journal of Innovation and Business Best Practices, 2013, 1–12. https://doi.org/10.5171/2013.768378
dc.relation.isbasedonEuropean Commission. (2010). Europe 2020. A European strategy for smart, sustainable and inclusive growth. Retrieved October 25, 2019, from https://ec.europa.eu/eu2020/pdf/COMPLET%20EN%20BARROSO%20%20%20007%20-%20Europe%202020%20-%20EN%20version.pdf
dc.relation.isbasedonEuropean Commission. (2014). Innovation statistics. European Commission. Retrieved February 20, 2019, from http://ec.europa.eu/eurostat/statistics-explained/index.php/Innovation_statistics
dc.relation.isbasedonEuropean Commission. (2015). European Innovation Scoreboard 2015. Retrieved February 15, 2019, from https://publications.europa.eu/en/publication-detail/-/publication/b00c3803-a940-11e5-b528-01aa75ed71a1
dc.relation.isbasedonFalk, R. (2007). Measuring the effects of public support schemes on firms’ innovation activities. Survey evidence from Austria. Research Policy, 36(5), 665–679. https://doi.org/10.1016/j.respol.2007.01.005
dc.relation.isbasedonGonzález, X., & Pazó, C. (2008). Do public subsidies stimulate private R&D spending? Research Policy, 37(3), 371–389. https://doi.org/10.1016/j.respol.2007.10.009
dc.relation.isbasedonGuellec, D., & van Pottelsberghe de la Potterie, B. (2000). The Impact of Public R&D Expenditure on Business R&D (OECD Science, Technology and Industry Working papers, No. 2000/04). Paris: OECD Publishing. https://doi.org/10.1787/670385851815
dc.relation.isbasedonGuo, D., Guo, Y., & Jiang, K. (2016). Government-subsidized R&D and firm innovation: Evidence from China. Research Policy, 45(6), 1129–1144. https://doi.org/10.1016/j.respol.2016.03.002
dc.relation.isbasedonHud, M., & Hussinger, K. (2015). The impact of R&D subsidies during the crisis. Research Policy, 44(10), 1844–1855. https://doi.org/10.1016/j.respol.2015.06.003
dc.relation.isbasedonChaminade, C., & Edquist, C. (2006). Rationales for public policy intervention from a systems of innovation approach: the case of VINNOVA (Papers in Innovation Studies 2006/4). Lund: CIRCLE – Center for Innovation, Research and Competences in the Learning Economy.
dc.relation.isbasedonChoi, J., & Lee, J. (2017). Repairing the R&D market failure: Public R&D subsidy and the composition of private R&D. Research Policy, 46(8), 1465–1478. https://doi.org/10.1016/j.respol.2017.06.009
dc.relation.isbasedonInnovation Policy Platform. (2019). Innovation in Firms. Retrieved March 12, 2019, from https://www.innovationpolicyplatform.org/content/innovation-firms/index.html
dc.relation.isbasedonJin, Z. J., Shang, Y., & Xu, J. (2018). The Impact of Government Subsidies and Private R&D and Firm Performance: Does Ownership Matter in China’s Manufacturing Industry? Sustainability, 10(7), 1–20. https://doi.org/10.3390/su10072205
dc.relation.isbasedonJaumotte, F., & Pain, N. (2005). An Overview of Public Policies to Support Innovation (Economics Department Working papers, 456). Paris: OECD Publishing.
dc.relation.isbasedonKacprzyk, A., & Świeczewska, I. (2019). Is R&D always growth-enhancing? Empirical evidence from EU countries. Applied Economics Letters, 26(2), 163–167. https://doi.org/10.1080/13504851.2018.1444257
dc.relation.isbasedonKerr, W. R., & Nanda, R. (2014). Financing Innovation (Working Paper 15-034). Boston, MA: Harvard Business School. Retrieved December 3, 2018, from http://www.hbs.edu/faculty/Publication%20Files/15-034_c08817a4-7eac-4c62-b58b-8632585180b5.pdf
dc.relation.isbasedonKnapková, M., Kiaba, M., & Hudec, S. (2019). Impact of macroeconomic indicators on public debt of Slovak Republic. Journal of Business Economics and Management, 20(4), 734–753. https://doi.org/10.3846/jbem.2019.10184
dc.relation.isbasedonKrstić, B., Stanišić, T., & Radivojević, V. (2016). The Impact of Innovativeness Factors on the EU Countries’ Competitiveness. Industrija, 44(2), 101–115. https://doi.org/10.5937/industrija44-10674
dc.relation.isbasedonKuncoro, W., & Suriani, W. O. (2018). Achieving sustainable competitive advantage through product innovation and market driving. Asia Pacific Management Review, 23(3), 186–192. https://doi.org/10.1016/j.apmrv.2017.07.006
dc.relation.isbasedonLeibowicz, B. D. (2018). Welfare improvement windows for innovation policy. Research Policy, 47(2), 390–398. https://doi.org/10.1016/j.respol.2017.12.009
dc.relation.isbasedonLesáková, Ľ. et al. (2017). Inovácie v činnosti malých a stredných podnikov v Slovenskej republike. Banská Bystrica: Belianum.
dc.relation.isbasedonLiu, X., Li, X., & Li, H. (2016). R&D subsidies and business R&D: Evidence from high-tech manufacturing firms in Jiangsu. China Economic Review, 41, 1–22. https://doi.org/10.1016/j.chieco.2016.08.003
dc.relation.isbasedonLööf, H., & Hesmati, A. (2005). The Impact of Public Funding on Private R&D Investment. New Evidence from a Firm Level Innovation Study (Electronic Working Paper Series, Paper No. 06). Stockholm: CESIS – Centre of Excellence for Science and Innovation Studies.
dc.relation.isbasedonLundwall, B.-Å. (2010). National Systems of Innovation. Toward a Theory of Innovation and Interactive Learning. London: Anthem Press.
dc.relation.isbasedonMarino, M., Lhuillery, S., Parrotta, P., & Sala, D. (2016). Additionality or crowding-out? An overall evaluation of public R&D subsidy on private R&D expenditure. Research Policy, 45(9), 1715–1730. https://doi.org/10.1016/j.respol.2016.04.009
dc.relation.isbasedonMartin, S., & Scott, J. T. (2000). The nature of innovation market failure and the design of public support for private innovation. Research Policy, 29(4–5), 437–447. https://doi.org/10.1016/S0048-7333(99)00084-0
dc.relation.isbasedonMoon, H., Mariadoss, B. J., & Johnson, J. L. (2017). Collaboration with higher education institutions for successful firm Innovation. Journal of Business Research, 99, 534–541. https://doi.org/10.1016/j.jbusres.2017.09.033
dc.relation.isbasedonNémethová, V., Širaňová, M., & Šipikal, M. (2019). Public support for firms in lagging regions – evaluation of Innovation subsidy in Slovakia. Science and Public Policy, 46(2), 173–183. https://doi.org/10.1093/scipol/scy046
dc.relation.isbasedonOECD. (2004). Financing innovative SMEs in a global economy. Retrieved December 15, 2018, from http://www.oecd.org/cfe/smes/31919231.pdf
dc.relation.isbasedonOECD. (2015). Measurement of R&D globalisation. In Frascati Manual 2015: Guidelines for Collecting and Reporting Data on Research and Experimental Development. Paris: OECD Publishing. https://doi.org/10.1787/9789264239012-13-en
dc.relation.isbasedonOECD. (2017). Innovation Statistics and Indicators. Retrieved October 25, 2019, from http://www.oecd.org/sti/inno/inno-stats.htm
dc.relation.isbasedonPerkmann, M., & Walsh, K. (2007). University-industry relationships and open Innovation: Towards a research agenda. International Journal of Management Reviews, 9(4), 259–280. https://doi.org/10.1111/j.1468-2370.2007.00225.x
dc.relation.isbasedonPlanes, B., Bardos, M., Sevestre, P., & Avouyi-Dovi, S. (2001). Innovation: Financing and Financing Constraints. Retrieved February 18, 2019, from https://www.bis.org/publ/cgfs19bdf3.pdf
dc.relation.isbasedonRybnicek, R., & Königsgruber, R. (2018). What makes industry-university collaborations succeed? A systematic review of the literature. Journal of business economics, 89(2), 221–250. https://doi.org/10.1007/s11573-018-0916-6
dc.relation.isbasedonSadraoui, T., & Zina, N. B. (2009). Complementarity between private and public investment in R&D: A Dynamic Panel Data analysis. Retrieved May 23, 2019, from https://arxiv.org/ftp/arxiv/papers/0905/0905.4272.pdf
dc.relation.isbasedonŞener, S., & Saridoğan, E. (2011). The Effects of Science-Technology-Innovation On Competitiveness And Economic Growth. Procedia – Social and Behavioral Sciences, 24, 815–828. https://doi.org/10.1016/j.sbspro.2011.09.127
dc.relation.isbasedonSpielkamp, A., & Rammer, C. (2009). Financing of Innovation – Thresholds and Options. Management & Marketing, 4(2), 3–18.
dc.relation.isbasedonVaivode, I. (2015). Triple Helix Model of university-industry-government cooperation in the context of uncertanities. Procedia – Social and Behavioral Sciences, 213, 1063–1067. https://doi.org/10.1016/j.sbspro.2015.11.526
dc.relation.isbasedonWang, H., Liang, P., Li, H., & Yang, R. (2016). Financing Sources, R&D Investment and Enterprise Risk. Procedia Computer Science, 91, 122–130. https://doi.org/10.1016/j.procs.2016.07.049.
dc.relation.ispartofEkonomie a Managementcs
dc.relation.ispartofEconomics and Managementen
dc.relation.isrefereedtrue
dc.rightsCC BY-NC
dc.subjectinnovationen
dc.subjectR&D fundingen
dc.subjectsubstitution effecten
dc.subjectpublic supporten
dc.subject.classificationO31
dc.subject.classificationO38
dc.titleThe contribution of innovation actors into business R&D funding – does the substitution effect of public support work in the EU?en
dc.typeArticleen
local.accessopen
local.citation.epage134
local.citation.spage121
local.facultyFaculty of Economics
local.filenameEM_1_2020_09
local.fulltextyes
local.relation.abbreviationE+Mcs
local.relation.abbreviationE&Men
local.relation.issue1
local.relation.volume23
Files
Original bundle
Now showing 1 - 1 of 1
Thumbnail Image
Name:
EM_1_2020_09.pdf
Size:
1.49 MB
Format:
Adobe Portable Document Format
Description:
článek
Download
Collections
Číslo 1