Hewitt-Dundas, Nola and Roper, Stephen. (2010) Output additionality of public support for innovation: evidence for Irish manufacturing plants. European Planning Studies, Vol.18 (No.1 Sp. Iss. SI). pp. 107-122. ISSN 0965-4313

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Abstract

Public support for private R&D and innovation is part of most national and regional innovation support regimes. In this article, we estimate the effect of public innovation support oil innovation outputs in Ireland and Northern Ireland. Three dimensions of output additionality are, considered extensive additionality, in which public support encourages a larger proportion of the population of firms to innovate; improved product additionality, in which there is an increase in the average importance of incremental Innovation; mew product additionality, in which there is an increase in the average importance of more radical innovation. Using an instrumental variable approach, our results are generally positive, with public support,for innovation having positive, and generally significant, extensive, improved and new product additionality affects. These results hold both for all plants and indigenously owned plants, a specific target of policy in both jurisdictions. The suggestion is that grant aid to firms can be effective in both encouraging firms to initiate new innovation and improve the quality and sophistication of their innovation activity. Our results also emphasize the importance for innovation of in-house R&D, supply-chain linkages. skill levels and capital investment, all of which may be the focus of complententary policy initiatives.

Item Type:	Journal Article
Subjects:	G Geography. Anthropology. Recreation > GE Environmental Sciences G Geography. Anthropology. Recreation H Social Sciences > HD Industries. Land use. Labor H Social Sciences > HT Communities. Classes. Races
Divisions:	Faculty of Social Sciences > Warwick Business School > Centre for Small & Medium-Sized Enterprises Faculty of Social Sciences > Warwick Business School > Entrepreneurship, Innovation & Management Faculty of Social Sciences > Warwick Business School
Journal or Publication Title:	European Planning Studies
Publisher:	Routledge Journals, Taylor & Francis Ltd.
ISSN:	0965-4313
Official Date:	January 2010
Volume:	Vol.18
Number:	No.1 Sp. Iss. SI
Number of Pages:	16
Page Range:	pp. 107-122
Identification Number:	10.1080/09654310903343559
Status:	Peer Reviewed
Publication Status:	Published
Access rights to Published version:	Restricted or Subscription Access
URI:	http://wrap.warwick.ac.uk/id/eprint/6478

Data sourced from Thomson Reuters' Web of Knowledge

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