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Appears in Collections:Economics Journal Articles
Peer Review Status: Refereed
Title: Industrial innovation: Direct evidence from a cluster-oriented policy
Authors: Falck, Oliver
Heblich, Stephan
Kipar, Stefan
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Keywords: Difference-in-differences
Cluster policy
Industrial policy
Issue Date: Nov-2010
Publisher: Elsevier
Citation: Falck O, Heblich S & Kipar S (2010) Industrial innovation: Direct evidence from a cluster-oriented policy, Regional Science and Urban Economics, 40 (6), pp. 574-582.
Abstract: Can local industrial policies increase local firm competitiveness? Cluster-oriented policies targeted at selected industries have just such a goal and are very popular among politicians, despite the controversy surrounding these policies in academia. Thus, it would appear useful to discover if cluster-oriented policies are effective. This paper evaluates the cluster-oriented policy introduced in Bavaria, Germany, in 1999. The policy's goal was to foster innovation and regional competitiveness by stimulating cooperation. Using difference-in-difference-in-differences estimates, we find for different innovation measures that the cluster-oriented policy increased the likelihood of becoming an innovator in the target industries by 4.6 to 5.7 percentage points. At the same time, R&D expenditures decreased by 19.4% on average for firms in target industries, while access to external know-how, cooperation with public scientific institutes, and the availability of suitable R&D personnel increased.
Type: Journal Article
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Rights: The publisher does not allow this work to be made publicly available in this Repository. Please use the Request a Copy feature at the foot of the Repository record to request a copy directly from the author. You can only request a copy if you wish to use this work for your own research or private study.
Affiliation: Ifo Institute for Economic Research, Germany
Ifo Institute for Economic Research, Germany

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