25 Years IWH

Centre for Evidence-based Policy Consulting (IWH-CEP)

The Centre for Evidence-based Policy Consulting (IWH-CEP) of the IWH was founded in 2014. It is a platform that bundles and structures activities in research, teaching, and policy consulting. IWH-CEP pursues the objective of creating better foundations for a causal analysis of policy implemented across different sectors.

IWH-CEP is designed as a service unit and supports the activities in the research groups by providing access to a supra-regional research and policy consulting network as well as access to data sets for causal analyses. IWH-CEP lies at the interface between three areas of responsibility and carries out coordination functions between them.

Centre for Evidence-based Policy Consulting (IWH-CEP)

The government intervenes in the market mechanism through a lot of policy instruments in order to achieve various economic objectives. However, for policy makers, it is important to know whether the originally intended objectives are also achieved. Scientific methods can make a significant contribution to this. These are necessary to establish a clear connection between a policy instrument and its effect. Against this background, the Centre for Evidence-based Policy Consulting (IWH-CEP) at the IWH was founded.

Research and Policy Consulting

Research and policy consulting are organized via the different research groups of the IWH. This organizational structure allows to assess policy changes from both a macro and micro perspective and cover different sectors of the economy.

To gain a better understanding of structural changes and economic growth, a first focus is set on the evaluation of industrial policy schemes,for example, the "Joint Task of 'Improving the Regional Economic Structure'" in the Federal State of Saxony-Anhalt (which is the most important regional policy support scheme in Germany) is being evaluated. The objective of the project is to use different evaluation techniques to assess the impact if policy support measures.. The project is carried out under the responsibility of IWH Research Group "The Performance of Firms and Regions".

A second key area  includes analyses on regulatory reforms and effects. Especially having in mind that after the recent financial crisis, a re-regulation of the financial system took place, it is of utmost importance to evaluate the effectiveness of the reforms as well as to assess whether there are unintended side-effects. In the context of the project "The Political Economy of the European Banking Union", researchers in the financial markets departments study how the directives underlying the European Banking Union are implemented across member states as well as whether the new regulatory framework has implications for banking stability and financial intermediation.

Set-up of a Network

IWH-CEP is part of the initiative for "Evidence-based Economic Policy", which is established by the Verein für Socialpolitik (German Economic Association). Through the connection with the initiative, visibility and knowledge transfer should be guaranteed in the scientific and political community.

Set-up and Maintenance of Databases


The major challenge in the analysis of effects of government interventions and regulatory changes  lies in the development of granular data. IWH-CEP advances into this direction by building up databases that can be shared with other researchers.

As such, at the IWH R&D Micro Database is set up, maintained and completed according to the (current) specialisation in the analysis of effects of industrial policy support schemes. Information about the funded projects alone is not sufficient to conduct causal analyses – corporate data of the official and commercial statistics must be referred to; this is organised using record linkage techniques. This task is carried out at the IWH Research Data Centre.

Additionally, the financial market department has set up the website International Banking Library, which is a web-based platform for the exchange of research on cross-border banking. It provides access to data sources, academic research, both theoretical and empirical on cross-border banking, as well as information on regulatory initiatives. Thus, the website provides researcher and policymakers with a comprehensive overview of available data to conduct policy evaluation and the current stance of the literature on regulation and supervision of financial markets. The quarterly newsletter summarizes recent developments and is received by both academics and central bankers.

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Actors and Interactions – Identifying the Role of Industrial Clusters for Regional Production and Knowledge Generation Activities

Mirko Titze Matthias Brachert Alexander Kubis

in: Growth and Change , No. 2, 2014


This paper contributes to the empirical literature on systematic methodologies for the identification of industrial clusters. It combines a measure of spatial concentration, qualitative input–output analysis, and a knowledge interaction matrix to identify the production and knowledge generation activities of industrial clusters in the Federal State of Saxony in Germany. It describes the spatial allocation of the industrial clusters, identifies potentials for value chain industry clusters, and relates the production activities to the activities of knowledge generation in Saxony. It finds only a small overlap in the production activities of industrial clusters and general knowledge generation activities in the region, mainly driven by the high-tech industrial cluster in the semiconductor industry. Furthermore, the approach makes clear that a sole focus on production activities for industrial cluster analysis limits the identification of innovative actors.

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Im Fokus: Geförderte FuE-Verbundprojekte: Sächsische Akteure wählen zunehmend Partner in räumlicher Nähe

Mirko Titze Matthias Brachert Wilfried Ehrenfeld

in: Wirtschaft im Wandel , No. 3, 2013


Externe Kooperationen bei innovativen Projekten sind mit einer Reihe von Vorteilen verbunden. Oft werden solche Projekte durch Kooperationen überhaupt erst möglich. Die Literatur stellt dabei insbesondere den Austausch von Wissen heraus. Für den Austausch einer ganz besonderen Form des Wissens, des so genannten nicht kodifizierten Wissens, ist oftmals räumliche Nähe erforderlich, da nicht kodifiziertes Wissen überwiegend durch persönliche Kontakte ausgetauscht wird. Der Bund und die Länder wenden eine ganze Reihe von Förderprogrammen an, die Anreize zur Aufnahme von innovativen Kooperationsprojekten bieten. Der vorliegende Beitrag analysiert die Kooperationsstrukturen innerhalb geförderter Verbundprojekte des Bundes in den Zeiträumen 1995 bis 2000 und 2005 bis 2010. Die Untersuchung richtet sich auf den Freistaat Sachsen. Es zeigt sich, dass die sächsischen Akteure im zweiten Zeitraum mehr Partner innerhalb Sachsens und der ostdeutschen Länder gewählt haben als in der ersten Periode. Dies spricht offenbar dafür, dass sächsische Partner attraktiver werden, und ermöglicht durch die räumliche Nähe den stärkeren Austausch von nicht kodifiziertem Wissen, welches wichtig für den Erfolg von Innovationsaktivitäten einer Region ist.

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Sächsischer Technologiebericht 2012

IWH Fraunhofer ISI EuroNorm GmbH

in: Studie im Auftrag des Sächsischen Staatsministeriums für Wissenschaft und Kunst , 2013


Der „Sächsische Technologiebericht 2012“ verfolgt das Ziel, das Innovationsgeschehen im Freistaat Sachsen umfassend darzustellen. Er beschreibt Potenziale und Rahmenbedingungen sowie Stärken und Schwächen der Innovationspraxis im Freistaat und ermöglicht als Monitoring-Instrument die Beobachtung der Entwicklung innovationsrelevanter Indikatoren im Zeitverlauf. Die Funktion des Monitorings erschöpft sich dabei nicht in der Erfassung von Ist-Zustand und Dynamik des Innovationsgeschehens, sondern soll Rückschlüsse darauf zulassen, ob durch die Politik vorgegebene Ziele erreicht wurden.

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What Drives Innovation Output from Subsidized R&D Cooperation? — Project-level Evidence from Germany

Michael Schwartz Michael Fritsch Jutta Günther François Peglow

in: Technovation , No. 6, 2012


Using a large dataset of 406 subsidized R&D cooperation projects, we provide detailed insights into the relationship between project characteristics and innovation output. Patent applications and publications are used as measures for the innovation output of an R&D project. We find that large-firm involvement is strongly positively related with the number of patent applications, but not with the number of publications. Conversely, university involvement has positive effects on projects’ innovation output in terms of the number of publications but not in terms of patent applications. In general, projects’ funding as measure of projects’ size is an important predictor of the innovation output of R&D cooperation projects. No significant effects are found for the number of partners as (an alternative) measure of projects’ size, for spatial proximity between cooperation partners, for the involvement of a public institute for applied research, and for prior cooperation experiences. We derive conclusions for the design of R&D cooperation support schemes.

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A Systemic View on Knowledge-based Development Metrics

Mirko Titze Michael Schwartz Matthias Brachert

in: International Journal of Knowledge-Based Development , No. 1, 2012


Drawing on the systems perspective of innovation processes, this article proposes a conceptual approach for a comprehensive analysis of regional knowledge generation and transfer. Instead of focusing on one single indicator, the approach emphasizes the importance to take multiple channels of knowledge transfer into account. This provides valuable insights into the spatial structure of innovation processes on different levels. We disentangle the innovation process and consider four different layers: i.) publications in peer-reviewed journals, ii.) patent applications, iii.) formal R&D collaboration projects, the iv.) localized input-output relations. Further, we demonstrate the relevance of the „multi-layer approach‟ by applying it empirically to a specific regional innovation system: The Free State of Saxony – a federal state in Germany. We argue that the approach could be a valuable tool to inform policy-makers about knowledge-based regional development strategies.

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