R&D Policy and Technological Trajectories of Regions: Evidence from the EU Framework Programmes

21 Pages Posted: 30 Aug 2017

See all articles by Wolf-Hendrik Uhlbach

Wolf-Hendrik Uhlbach

Utrecht University - Department of Economic Geography

Pierre Alexandre Balland

Utrecht University - Department of Economic Geography

Thomas Scherngell

AIT - Austrian Institute of Technology

Date Written: August 28, 2017

Abstract

It is widely acknowledged that new technological specializations of regions are to a large extent driven by the recombination of existing knowledge and capabilities. Since this process is path-dependent and self-reinforcing, it can easily lead to technological lock-ins. A key issue is therefore to evaluate whether public policy can impact technological trajectories of regions and how it can be more effective. To address this issue, we analyze quantitatively and systematically the relation between R&D subsidies and new technological specializations of European regions from 1999 to 2010. R&D subsidies are identified by using the EU Framework Programmes (FP) from the EUPRO database, and matched with patent documents from the OECD-REGPAT database. Using a fixed-effects linear probability model, our results indicate that FP participation have a positive but relatively small effect on the development of new specializations of regions, and that it can compensate for a lack of local related capabilities. We also find evidence that R&D subsidies have the highest impact if the level of relatedness with the new technology is neither too low (policy cannot build a cathedral in the desert) nor too high (if all the capabilities are already present there is no need for policy).

Keywords: Regional Diversification, Technological Change, R&D subsidies, EU Framework Programmes

JEL Classification: O31, O33, O38, O52

Suggested Citation

Uhlbach, Wolf-Hendrik and Balland, Pierre Alexandre and Scherngell, Thomas, R&D Policy and Technological Trajectories of Regions: Evidence from the EU Framework Programmes (August 28, 2017). Available at SSRN: https://ssrn.com/abstract=3027919 or http://dx.doi.org/10.2139/ssrn.3027919

Wolf-Hendrik Uhlbach

Utrecht University - Department of Economic Geography ( email )

Heidelberglaan 2
Utrecht
Netherlands

Pierre Alexandre Balland (Contact Author)

Utrecht University - Department of Economic Geography ( email )

Heidelberglaan 2
Utrecht
Netherlands

HOME PAGE: http://paballand.com

Thomas Scherngell

AIT - Austrian Institute of Technology ( email )

Donau-City-Strasse 1
Vienna, 1220
Austria

Do you have negative results from your research you’d like to share?

Paper statistics

Downloads
162
Abstract Views
940
Rank
331,086
PlumX Metrics