Dr. Rainer Widmann

Widmann, Rainer (2024). The Behavioral Additionality of Government Research Grants, International Journal of Industrial Organization 93. DOI

• There are different forms of public support for industrial R&D. Some attempt to increase innovation by prompting firms to undertake more challenging projects than they otherwise would. Access to a dataset from one such program, the Austrian Research Promotion Agency, allows me to examine the effect of research grants on firms' patenting outcomes. My estimates suggest that a government research grant increases the propensity to file a patent application with the European Patent Office by around 12 percentage points. Stronger effects appear for more experienced firms of advanced age. Additional evidence indicates that grants induce experienced firms to develop unconventional patents and patents that draw on knowledge novel to the firm. I interpret the findings in a “exploration vs. exploitation” model, in which grants are targeted at ambitious projects that face internal competition from more conventional projects within firms. The model shows that this mechanism is more salient in experienced firms, leading to a stronger response in behavior for this group of firms.
• Also published as: Rationality and Competition Discussion Paper Series 417

Widmann, Rainer (2023). Immigrant Inventors and Local Income Taxes: Evidence from Swiss Municipalities, Journal of Public Economics, 219 (March). DOI

• This paper studies the relationship between local personal income tax rates and the attractiveness of municipalities as residential locations for immigrant inventors in Switzerland. Exploiting sharp differences in top income tax rates across state borders, I find an elasticity of the probability that an inventor takes residence in a border municipality with respect to the top net-of-tax rate of around 3.2. Additional evidence suggests that inventors’ residential location choices are consequential for the localization of entrepreneurial activity and local knowledge spillovers.
• Also published as: Max Planck Institute for Innovation & Competition Research Paper No. 21-17

Widmann, Rainer (2023). The Behavioral Additionality of Government Research Grants (Rationality and Competition Discussion Paper Series, Rationality and Competition, 417 ).

• There are different forms of public support for industrial R&D. Some attempt to increase innovation by prompting firms to undertake more challenging projects than they would otherwise do. Access to a dataset from one such program, the Austrian Research Promotion Agency, allows me to examine the effect of research grants on firms’ patenting outcomes. My estimates suggest that a government research grant increases the propensity to file a patent application with the European Patent Office by around 12 percentage points. Stronger effects appear for more experienced firms of advanced age. Additional evidence indicates that grants induce experienced firms to develop unconventional patents and patents that draw on knowledge novel to the firm. I interpret the findings in a exploration vs. exploitation model, in which grants are targeted at ambitious projects that face internal competition from more conventional projects within firms. The model shows that this mechanism is more salient in experienced firms, leading to a stronger response in behavior for this group of firms.
• https://ideas.repec.org/p/rco/dpaper/417.html
• Forthcoming in: International Journal of Industrial Organization Volume 93, March 2024, 103045

Widmann, Rainer; Rose, Michael; Chugunova, Marina (2022). Allegations of Sexual Misconduct, Accused Scientists, and Their Research, Max Planck Institute for Innovation & Competition Research Paper, No. 22-18. DOI

• We study academic consequences of non-academic misconduct for accused researchers at US universities. Focusing on allegations of sexual misconduct, we find detrimental effects on scientific impact, productivity and career. Other researchers are less likely to cite the perpetrator’s prior work after allegations surface. The effect is absent in male-dominated fields and weakens with distance in the co-authorship network, indicating that researchers learn about allegations via their peers. Although we find that alleged perpetrators tend to remain active researchers, they are less likely to be affiliated with a university and publish fewer articles following the incident.

Widmann, Rainer (2021). Immigrant Inventors and Local Income Taxes: Evidence from Swiss Municipalities, Max Planck Institute for Innovation & Competition Research Paper, No. 21-17.

• This paper studies the relationship between local personal income tax rates and the attractiveness of municipalities as residential locations for immigrant inventors in Switzerland. Exploiting sharp differences in top income tax rates across state borders, I find an elasticity of the probability that an inventor takes residence in a municipality with respect to the top net-of-tax rate of around 4. Additional evidence suggests that inventors’ residential location choices are consequential for the localization of entrepreneurial activity and local knowledge spillovers.
• Available at SSRN
• Also published in: Journal of Public Economics, 219 (March), 104822