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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
Technovation, No. 6, 2012
Abstract
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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Incubator Organizations as Entrepreneurship and SME Policy Instrument in Transition Economies: A Survey among six Countries
Michael Schwartz, Sebastian Blesse
Asia Pacific Journal of Innovation and Entrepreneurship, No. 3, 2011
Abstract
Within incubator-incubation research, there is a predominant focus on incubator organizations located in industrialized or developed economies. Knowledge regarding the evolution of incubators located in transition economies is almost non-existent. However, meanwhile a significant number of incubators have been established since the fall of the iron curtain in many Central and Eastern European (CEE) countries as well. Here, the present paper sets in through providing evidence on the development, distribution and structural characteristics of incubators in six selected CEE countries (Poland, Czech Republic, Slovakia, Lithuania, Estonia and Latvia). We show that incubator organizations have become a central element of support infrastructure for SME and entrepreneurship in CEE countries during the past 20 years. We further argue that by drawing upon the accumulated experience with incubators in developed Western (European) economies, there are important lessons to be learned for incubator stakeholders in transition economies. We, therefore, outline particular suggestions considered to be vital for long-term successful incubation processes in transition economies.
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Local Economic Structure and Sectoral Employment Growth in German Cities
Annette Illy, Michael Schwartz, Christoph Hornych, Martin T. W. Rosenfeld
Tijdschrift voor economische en sociale geografie, No. 5, 2011
Abstract
This study systematically examines the impact of fundamental elements of urban economic structure on sectoral employment growth in German cities (“urban growth”). We test four elements simultaneously – sectoral specialisation, diversification of economic activities, urban size and the impact of local competition. To account for the effect of varying spatial delimitations in the analysis of urban growth, we further differentiate between cities and planning regions as geographical units. Our regression results show a U-shaped relationship between localisation economies and urban growth and positive effects of local competition on urban growth. With respect to diversification, we find positive effects on urban growth on the city level, but insignificant results on the level of the planning regions. The impact of urban size also differs between free cities and planning regions; in the former, a U-shaped relationship is found, whereas the effect is inversely U-shaped for the latter.
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A Systemic View on Knowledge-based Development Metrics
Mirko Titze, Michael Schwartz, Matthias Brachert
International Journal of Knowledge-Based Development, No. 1, 2012
Abstract
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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Incubating an Illusion? Long-term Incubator Firm Performance after Graduation
Michael Schwartz
Growth and Change, No. 4, 2011
Abstract
Local economic development policies worldwide perceive business incubation as an effective measure to promote regional growth through the support of young and innovative ventures. The common assumption is that incubation promotes firm growth, in particular after these firms graduated from their incubator organizations. This article investigates the long-term performance of 324 graduate firms from five German business incubators (incubated between 1990 and 2006) after they have (successfully) completed their incubation. The present study does not suffer from a survivor bias, meaning that performance data of non-surviving firms is also included. Using employment and sales measures as performance indicators, this study contributes to our knowledge with regard to long-term incubator firm performance after graduation. While in the first years after graduation there is significant growth of formerly incubated firms, further results do not support the presumption of continuous firm growth beyond incubation. A minority of graduate firms exhibits a strong increase in performance, but the majority of firms do not experience considerable growth.
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Measuring Regionalized Knowledge Generation and Transfer – A Feasibility Study Using a Multi-layer Approach in the Free State of Saxony
Mirko Titze, Matthias Brachert, Jutta Günther, Michael Schwartz
IWH-Sonderhefte, No. 5, 2010
Abstract
Economic literature regards knowledge creation and learning as critical elements for gaining competitive advantage of regions. However, recognizing the importance of innovation and knowledge creation to economic success is far from being novel. Original is the view of increasing importance of knowledge creation for speeding up the depreciation of existing knowledge stocks. This puts a high pressure on regional actors to constantly participate in innovation processes to maintain their competitive advantages. Against this background, regional actors – if they aim to be successful in the globalized economy – first require access to a comprehensive and diversified knowledge base. Second, they need to participate in the processes of knowledge generation and knowledge transfer. Thereby, systemic innovation theory has pronounced the view that the locus of innovation and knowledge creation resides not only within the boundaries of the regional actors, such as private firms, universities, research laboratories, suppliers, and customers, but is the result of an interdependent exchange process between these different types. Collaborative interactions, bringing together different types of actors, may therefore lie well at the heart of accelerated knowledge creation and learning at the regional level (Lundvall and Johnson 1994).
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Creating Networks by Public Research Subsidies in Saxony?
Michael Schwartz, Nicole Nulsch, Jutta Günther
Wirtschaft im Wandel, No. 2, 2011
Abstract
It is generally acknowledged that research organizations require public support to perform research and development activities. In this context, projects grants play a continuously increasing role that, particularly, aim at strengthening network relationships among the actors within an innovation system. Given that, the Halle Institute for Economic Research has investigated whether public research subsidies (i.e. research grants) in the Free State of Saxony promote networks and provide the basis for future cooperation activities. Results of this study suggest that research grants in Saxony, given the self-assessment of the supported scientists, are conducive to the establishment of network relationships (including also industry actors) and can further contribute to make a better use of cooperation agreements in the future.
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Knowledge Sharing Through Informal Networking: An Overview and Agenda
Michael Schwartz, Christoph Hornych
International Journal of Knowledge-Based Development, No. 3, 2011
Abstract
Informal inter-organizational networks provide manifold opportunities to organize the transfer of information, knowledge and technology between actors. The importance of informal networks as a channel of knowledge transfer is widely acknowledged by academics and practitioners. However, there is a significant lack of discussion on their theoretical foundations and systematic empirical research on the origins, dynamics and effects of informal networking. The objective of this paper is threefold. First, we review the fragmented academic discussion of the notion of informal networking, thereby focusing on how these relationships emerge initially and what conditions (presumably) are required to make them a mutually fruitful and sustainable channel of the transfer of information and knowledge. Second, we give an up-to-date overview over most important and recent studies trying to disentangle the mechanisms of inter-organizational informal networking. Finally, we outline an agenda of future research directions which we encourage researchers to pursue in future empirical studies. Overall, six important research gaps are identified.
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Regional Entrepreneurial Opportunities in the Biotech Industry: Exploring the Transition from Award-winning Nascent Entrepreneurs to Real Start-ups
H. Wolf, Claus Michelsen, Michael Schwartz
IWH Discussion Papers, No. 25, 2010
published in:
European Planning Studies
Abstract
Knowledge of factors that determine the transition from nascent entrepreneurship into real entrepreneurship is of major importance for policies aiming to effectively stimulate start-ups. Whereas scholars concentrated on person-specific factors to explain transition probabilities, environmental characteristics have been fairly neglected. Given that entrepreneurship is a strongly localized phenomenon, this paper argues that regional entrepreneurial opportunities are a driving force behind the transition from nascent entrepreneurship to new venture creation. Based on unique data on 103 nascent entrepreneurs in the German biotechnology industry, we empirically assess the importance of regional entrepreneurial opportunities on transition probabilities. Further, we introduce a new approach to measure nascent entrepreneurship by capturing individuals that actively participate in start-up competitions and have won at least one competition. Controlling for technology and individual characteristics, we find strong support for our hypotheses relating to the significant impact of general regional opportunities, specific regional opportunities and the entrepreneurial environment for the probability of transition from award-winning nascent entrepreneurs to real start-ups.
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Von der Intention zur Gründung - Gründerwettbewerbe in Deutschland
N. Waldmann, Michael Schwartz, Claus Michelsen
List Forum für Wirtschafts- und Finanzpolitik, No. 4, 2010
Abstract
The number of aspiring entrepreneurs in high-tech industries that succeed in completing the transition from nascent entrepreneurship to new venture creation is too low in Germany. Responding to this unsatisfactory situation, since the mid 1990s, numerous start-up competitions (or business plan competitions) have been established to stimulate the transition from nascent to real entrepreneurship. Those competitions have too major objectives: Increasing start-up probabilities by mobilizing potential entrepreneurs while simultaneously increasing the probability of start-up success of the prospective start-ups. Despite their importance as (policy) measure to encourage entrepreneurship, a discussion of their effectiveness is missing so far. The present article tries to contribute to the understanding of start-up competitions by providing broad empirical evidence on the development, on the regional distribution and on the most important characteristics of existing start-up competitions in Germany. Further, the article presents and discusses most important empirical results regarding the effectiveness of those start-up competitions (and other important factors as well) to act as a driving force behind the transition from nascent entrepreneurship to new venture creation in high-technology industries. Finally, we derive conclusions for an agenda of main future research questions.
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