How Public R&D Support Affects Research Activity of Enterprises: Evidence from the Czech Republic
- 36 Downloads
Public support for research and development (R&D) in business sector is usually justified by the argument about market failure. New knowledge produced by research and development has some features of public good, which causes underinvestment in private R&D activities. From the social development point of view, it is desirable to produce and diffuse new knowledge. The article seeks to answer the question what impact a change in the amount of public support for R&D has on research activities of private enterprises. This paper tries to bridge a gap in the literature dealing with impact of R&D policy in emerging innovation systems in Central Europe. Our research is carried out on the example of the Czech Republic and its regions. We evaluate direct and indirect R&D support in the period 2007–2015, and we pay attention to three variables representing R&D in businesses: business expenditures on R&D, number of R&D employees in businesses and number of R&D workplaces in businesses. We calculate year-on-year changes in all the observed variables, and the relation between the public support and research activities of enterprises is assessed through descriptive statistics, measures of association and regression models. Our analyses proved a positive impact of R&D support on companies’ own expenditures on R&D and the number of employees. The relation between R&D support and number of workplaces seems to be quite weak. The paper also discusses limitations of the research and implications for public policy.
KeywordsResearch and development Innovation Public support Expenditures on R&D Region Czech Republic
- Afcha, S., & García-Quevedo, J. (2016). The impact of R&D subsidies on R&D employment composition. Industrial & Corporate Change, 25(6), 955–975.Google Scholar
- Ali-Yrkkö, J. (2005). Impact of public R&D financing on employment. ETLA Discussion Papers, No. 980.Google Scholar
- Arrow, K. J. (1962). Economic welfare and the allocations of resources of invention. In The rate and direction of inventive activity: economic and social factors (pp. 609–626). Princeton: Princeton University Press.Google Scholar
- CSO. (2016). Výzkum a vývoj v krajích 2005–2015. https://www.czso.cz/csu/czso/statistika_vyzkumu_a_vyvoje. Accessed 10 Sept 2017.
- CSO. (2017). Nepřímá veřejná podpora výzkumu a vývoje v České republice 2015. https://www.czso.cz/csu/czso/neprima-verejna-podpora-vyzkumu-a-vyvoje-v-ceske-republice. Accessed 10 Sept 2017.
- Drucker, P. F. (2015). Innovation and entrepreneurship: practice and principles. London: Routledge Classics.Google Scholar
- European Commission (2010). Europe 2020. A strategy for smart, sustainable and inclusive growth. http://ec.europa.eu/europe2020/index_en.htm. Accessed 20 August 2016.
- European Commission (2018). European Innovation Scoreboard. http://ec.europa.eu/growth/industry/innovation/facts-figures/scoreboards_en. Accessed 4 July 2018.
- Isaksen, A. (2001). Building regional innovation systems: is endogenous industrial development possible in the global economy? Canadian Journal of Regional Science, 24(1), 101–120.Google Scholar
- Janeček, M., Mráček, K., & Neumajer, V. (2012). Nepřímá podpora výzkumu, vývoje a inovací. Podklad pro přípravu nové NP VaVaI. Prague: Aktivity pro výzkumné organizace, o.p.s.Google Scholar
- Klímová, V., & Žítek, V. (2012). Selected aspects of the innovation environment in the south Moravian and the Moravian-Silesian regions. In Proceedings of the 1st International Conference on European Integration (pp. 117–130). Ostrava: VŠB-TUO.Google Scholar
- Kraftová, I., & Miháliková, E. (2011). Rozsah a dopady podpory výzkumu a inovací v zemích bývalého Československa. Scientific Papers of the University of Pardubice. Series D, XVI(22), 81–93.Google Scholar
- Mynarzová, M., & Štverková, H. (2015). Public support as an important factor for competitiveness of SMEs in the European Union. In Conference on Current Problems of the Corporate Sector (pp. 452–461). Bratislava: University of Economics in Bratislava.Google Scholar
- OECD. (2005). Oslo manual. The measurement of scientific and technological activities, proposed guidelines for collecting and interpreting technological innovation data (3rd ed.). Paris: Organization for Economic Co-operation and Development.Google Scholar
- OECD. (2016). Measuring tax support for R&D and innovation. Organization for Economic Co-operation and Development. http://www.oecd.org/science/rd-tax-stats.htm. Accessed 16 August 2017.
- Prokop, V., & Stejskal, J. (2017). Different approaches to managing innovation activities: an analysis of strong, moderate, and modest innovators. Inzinerine Ekonomika-Engineering Economics, 28(1), 47–55.Google Scholar
- Schumpeter, J. A. (1939). Business cycles: a theoretical, historical, and statistical analysis of the capitalist process. New York: McGraw-Hill book Company.Google Scholar