As part of the CBP seminar series, Dr Enrico Vanino (University of Sheffield) will provide a presentation on Exploring Spatial and Sectoral Complementarities in Public Support for Innovation: Two UK Experiments.

Abstract

Previous studies have suggested that national R&D and innovation support measures have substantial benefits in terms of business growth. Here, for the first time, we provide an assessment of the business benefits of regional, sectoral and national R&D and innovation support measures, analysing their trade-offs and complementarities. We match firm-level data on business performance with administrative data on firms’ receipt of national R&D awards funded by UKRI, regional R&D and innovation awards funded by Invest Northern Ireland (Invest NI), and administrative data on firms’ engagement with the sectoral Catapult network. We make three main contributions. First, our data structure allows us to compare the business benefits of national, regional and sectoral support measures for R&D and innovation using a common set of evaluation metrics. Second, using an integrated data structure allows us to examine potential synergies and conflicts between national and regional/sectoral sources of R&D and innovation support available in the UK. Does regional or sectoral support crowd-out or substitute for national support? Do national and regional support measures work in a complementary way? Do regional grant supports act as a stepping-stone to obtaining national grant support for R&D or innovation. Understanding these potential synergies has clear policy benefits at national, regional and sectoral level. It also has implications for evaluations of the effects of different policy measures: complementarities would suggest that evaluations of each measure individually would under-estimate their total benefits; conflicts would suggest individual evaluations would overestimate the benefits of individual schemes. Third, our analysis contributes to our limited understanding of policy synergies/conflicts within innovation eco-systems. Finally, we provide some initial evidence of the role of place-based and industry-specific innovation policies for levelling up.

 

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