25 Years IWH

Dr Matthias Brachert

Dr Matthias Brachert
Current Position

since 11/07

Economist in the Department of Structural Change and Productivity

Halle Institute for Economic Research (IWH) – Member of the Leibniz Association

Research Interests

  • economic geography
  • urban economics
  • economic policy

Matthias Brachert joined the Department of Structural Change and Productivity in 2007. He is a member of the Research Group "The Performance of Firms and Regions: Determinants and the Evaluation of Industrial Policy". His research focuses on economic geography, urban economics and economic policy.

Matthias Brachert studied economics at Martin Luther University Halle-Wittenberg and at Université de La Réunion, France. He received his doctor's degree under Ron Boschma at Utrecht University.

Your contact

Dr Matthias Brachert
Dr Matthias Brachert
Mitglied - Department Structural Change and Productivity
Send Message +49 345 7753-870



Joint R&D Subsidies, Related Variety, and Regional Innovation

T. Broekel Matthias Brachert M. Duschl T. Brenner

in: International Regional Science Review , No. 3, 2017


Subsidies for research and development (R&D) are an important tool of public R&D policy, which motivates extensive scientific analyses and evaluations. This article adds to this literature by arguing that the effects of R&D subsidies go beyond the extension of organizations’ monetary resources invested into R&D. It is argued that collaboration induced by subsidized joint R&D projects yield significant effects that are missed in traditional analyses. An empirical study on the level of German labor market regions substantiates this claim, showing that collaborative R&D subsidies impact regions’ innovation growth when providing access to related variety and embedding regions into central positions in cross-regional knowledge networks.

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On the Simultaneity Bias in the Relationship Between Risk Attitudes, Entry into Entrepreneurship and Entrepreneurial Survival

Matthias Brachert Walter Hyll Mirko Titze

in: Applied Economics Letters , No. 7, 2017


We consider the simultaneity bias when examining the effect of individual risk attitudes on entrepreneurship. We demonstrate that entry into self-employment is related to changes in risk attitudes. We further show that these changes are correlated with the probability to remain in entrepreneurship.

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Mapping Potentials for Input-Output Based Innovation Flows in Industrial Clusters – An Application to Germany

Mirko Titze Matthias Brachert Hans-Ulrich Brautzsch

in: Economic Systems Research , No. 4, 2016


Our paper pursues two aims: first, it presents an approach based on input–output innovation flow matrices to study intersectoral innovation flows within industrial clusters. Second, we apply this approach to the identification of structural weaknesses in East Germany relative to the western part of the country. The case of East Germany forms an interesting subject because while its convergence process after unification began promisingly in the first half of the 1990s, convergence has since slowed down. The existing gap can now be traced mainly to structural weaknesses in the East German economy, such as the absence of strong industrial cluster structures. With this in mind, we investigate whether East Germany does in fact reveal the abovementioned structural weaknesses. Does East Germany possess fewer industrial clusters? Are they less connected? Does East Germany lack specific clusters that are also important for the non-clustered part of the economy?

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Working Papers


Identifying the Effects of Place-based Policies – Causal Evidence from Germany

Eva Dettmann Matthias Brachert Mirko Titze

in: IWH Discussion Papers , No. 18, 2016


The German government provides discretionary investment grants to structurally weak regions to reduce regional disparities. We use a regression discontinuity design that exploits an exogenous discrete jump in the probability of receiving investment grants to identify the causal effects of the investment grant on regional outcomes. We find positive effects for regional gross value-added and productivity growth, but no effects for employment and gross wage growth.

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The Structure and Evolution of Intersectoral Technological Complementarity in R&D in Germany from 1990 to 2011

Matthias Brachert T. Broekel

in: IWH Discussion Papers , No. 13, 2014


Technological complementarity is argued to be a crucial element for effective Research and Development (R&D) collaboration. The real structure is, however, still largely unknown. Based on the argument that organizations’ knowledge resources must fit for enabling collective learning and innovation, we use the co-occurrence of firms in collaborative R&D projects in Germany to assess inter-sectoral technological complementarity between 129 sectors. The results are mapped as complementarity space for the Germany economy. The space and its dynamics from 1990 to 2011 are analyzed by means of social network analysis. The results illustrate sectors being complements both from a dyadic and portfolio/ network perspective. This latter is important, as complementarities may only become fully effective when integrated in a complete set of different knowledge resources from multiple sectors. The dynamic perspective moreover reveals the shifting demand for knowledge resources among sectors at different time periods.

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On the Stability of Preferences: Repercussions of Entrepreneurship on Risk Attitudes

Matthias Brachert Walter Hyll

in: IWH Discussion Papers , No. 5, 2014


The majority of empirical studies make use of the assumption of stable preferences in searching for a relationship between risk attitude and the decision to become and stay an entrepreneur. Yet empirical evidence on this relationship is limited. In this paper, we show that entry into entrepreneurship itself plays a decisive role in shaping risk preferences. We find that becoming self-employed is indeed associated with a relative increase in risk attitudes, an increase that is quantitatively large and significant even after controlling for individual characteristics, different employment status, and duration of entrepreneurship. The findings suggest that studies assuming that risk attitudes are stable over time suffer from reverse causality; risk attitudes do not remain stable over time, and individual preferences change endogenously.

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