Behavioural additionality of R&D subsidies: A learning perspective
Clarysse, Bart Wright, Mike Mustar, P.
Clarysse, Bart
Wright, Mike
Mustar, P.
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Publication Type
Journal article
Editor
Supervisor
Publication Year
2009
Journal
Research Policy
Book
Publication Volume
38
Publication Issue
10
Publication Begin page
1517
Publication End page
1533
Publication NUmber of pages
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Abstract
The use of R&D grants as a policy instrument has been motivated by economic arguments of market failure. Neo-classical econometric studies have analysed the additionality of one Euro of subsidies on both the investments of companies in the R&D process and the output of that R&D process. More recently, behavioural additionality has been launched as a third form of additionality. In contrast to input and output additionality, behavioural additionality is related to changes in the processes that take place within the firm. In this paper, we analyse the determinants of the behavioural additionality of R&D grants. To explain the mechanism through which behavioural additionality is obtained, we use organizational learning theory as a guide to formulate our hypotheses. Hypotheses are tested using a telephone survey of 192 recipients of R&D grants provided by the IWT in Flanders in 2001–2004, matched to a sample of 84 firms that undertake innovation activities but which had never had a grant bid accepted. We find that congenital learning and interorganizational learning lead to increased behavioural additionality. However, these learning effects decrease with the number of subsidized projects that are undertaken by the company.
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Keywords
Innovation Management