The Impact of Innovation and Innovation Subsidies on Economic Development in German Regions

Public innovation subsidies in a regional environment are expected to unfold a positive economic impact over time. The focus of this paper is on an assessment of the long-run impact of innovation and innovation subsidies in German regions. This is scrutinized by an estimation approach combining panel model and time-series characteristics and using regional data for the years 1980–2014. The results show that innovation and innovation subsidies in the long run have a positive impact on the economic development of regions in Germany. This supports a long-term strategy for regional and innovation policy.

15. September 2019

Authors Uwe Cantner Eva Dettmann Alexander Giebler Jutta Günther Maria Kristalova

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