Max Planck Institute for Innovation and Competition, Munich, Room 313
Public support for industry, either financial or in-kind, is predicated on the existence of unpaid and unrequited benefits flowing from one organisation to another. It follows that public support should be most generous where the outflows of these benefits are greatest. R&D activity is considered one notable source of these external benefits. There is now as strong and consistent body of evidence across the world that shows that firms, which interact or locate near R&D-active firms, receive considerable benefits. However, there is no reason why the magnitude of these benefits should be the same from all industries. Despite the quantity of studies, there has been scant evidence to indicate which sectors and what type of R&D produce the most benefits. This paper takes a step towards addressing this omission with the ultimate goal being the design of more targeted industry policies.
Contact person: Fabian Gaessler