Evaluation of Subsidy Programmes

This research group focuses on two main research questions: (i) What is the causal effect of cooperative innovation activities on the performance of firms and regions? (ii) What are the causal effects of public Research and Development (R&D) support schemes on the performance of firms and regions? The first research question concerns the dynamics of firms and regions as a result of their different innovation activities. We apply a micro-based integrative perspective on innovative activities which allows identifying causal effects of cooperative activities on specific outcomes (e. g., patent applications, scientific publications, employment growth, or productivity growth). Concerning the second research question, recent studies mainly focus on the evaluation of one specific subsidy scheme. Research in this group aims to overcome this shortcoming by considering various support schemes. Indicators for the firms’ success are (amongst others) patent applications and employment growth. The results allow insights for the future design of innovation support schemes.

IWH Subsidy Database

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

Research Cluster
Institutions and Social Norms

Your contact

PD Dr Mirko Titze
PD Dr Mirko Titze
Mitglied - Department Präsidialbereich
Send Message +49 345 7753-861

EXTERNAL FUNDING

09.2019 ‐ 09.2022

Establishing Evidence-based Evaluation Methods for Subsidy Programmes in Germany (EVA-KULT)

European Regional Development Fund (ERDF)

The project aims at expanding the Centre for Evidence-based Policy Advice at the Halle Institute for Economic Research (IWH-CEP).

see project's webpage

PD Dr Mirko Titze

01.2018 ‐ 12.2020

Networked growth - Innovative Saxony-Anhalt through digital business models (Competence Center 4.0)

Federal Ministry for Economic Affairs and Energy (BMWI)

PD Dr Mirko Titze

01.2017 ‐ 12.2018

Political Participation in Eastern Germany

Federal Ministry for Economic Affairs and Energy (BMWI)

Dr Matthias Brachert

12.2015 ‐ 11.2018

Socio-economic Effects of Research on Innovative Approaches for POC Diagnostics

Federal Ministry of Education and Research (BMBF)

Part of the EXASENS project. Coordinated by the Leibniz Institute of Photonic Technology (IPHT) in Jena, nine Leibniz institutes are working together on researching point-of-care (POC) technology for the prediction and diagnosis of chronic inflammatory respiratory diseases. See press release.

Dr Matthias Brachert

02.2017 ‐ 02.2018

The Importance of Non-University Research Institutions for the Development of Firms and Regions (Be_For_Reg-Projekt)

Federal Ministry of Education and Research (BMBF)

PD Dr Mirko Titze

01.2015 ‐ 12.2016

Evaluation of the "Joint Task 'Improving the Regional Economic Structure'" in the Federal State of Saxony-Anhalt

Investitionsbank Sachsen-Anhalt

PD Dr Mirko Titze

Refereed Publications

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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

Abstract

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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Non-union Worker Representation, Foreign Owners, and the Performance of Establishments

U. Jirjahn Steffen Müller

in: Oxford Economic Papers, No. 1, 2014

Abstract

Using German establishment data, this study provides the first econometric analysis on the interaction of establishment-level codetermination and foreign owners. Works councils are associated with higher productivity in domestic-owned establishments while they are associated with lower productivity in foreign-owned establishments. Our results conform to the notion that foreign ownership can involve strong tensions with the institutional patterns of the host country.

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Adjustments in the Use of Temporary Agency before and during the 2008/2009 Economic Crisis

Steffen Müller

in: Industrielle Beziehungen, No. 1, 2014

Abstract

The use of temporary agency work in Germany strongly increased between 2002 and the economic crisis of 2008 and 2009. This increase was characterised by an intensified use in medium and large manufacturing plants and was concentrated within user firms, i.e. the intensive margin was dominant. These phenomena can be explained with reduced transaction costs and strong international competition and they indicate increased productivity amongst user firms. The sharp decline in the use of temporary agency work during the economic crisis was concentrated among exporters and large manufacturing plants and mostly driven by the extensive margin. Employment opportunities in the temporary work sector were in particular sensitive to changes in the international demand for goods of the German manufacturing sector.

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Guest Editorial: Which Regions Benefit from Emerging Industries? Guest Editorial

Matthias Brachert Uwe Cantner H. Graf Jutta Günther Michael Schwartz

in: European Planning Studies, No. 11, 2013

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The Impact of R&D Collaboration Networks on the Performance of Firms and Regions: A Meta-Analysis of the Evidence

Gunnar Pippel

in: International Journal of Networking and Virtual Organisations, No. 4, 2013

Abstract

Innovation is the result of an interactive process. Knowledge-intensive interactions among different partners are associated with a variety of advantages and disadvantages for the actors involved. Therefore, a rich body of literature investigating the impact of R&D collaboration networks on the innovation performance of firms and regions has developed over the last two decades. Those studies come to different results. The aims of this paper are manifold. First, the paper summarizes the results of the relevant literature. Second, a brief overview of the established methods and approaches used in the literature to investigate this research question is given. The third objective is to answer the question whether the achieved results in the literature are predetermined by the employed methods. Finally, relevant gaps for further research are identified. To answer these questions a meta-analysis of the relevant literature is conducted. This study shows that knowledge-intensive interactions have a rather positive impact on the performance of firms and regions. There is also evidence that the employed methods and approaches used in the literature to investigate this research question predetermine the outcome of the research.

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Working Papers

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flexpaneldid: A Stata Toolbox for Causal Analysis with Varying Treatment Time and Duration

Eva Dettmann Alexander Giebler Antje Weyh

in: IWH Discussion Papers, No. 3, 2020

Abstract

The paper presents a modification of the matching and difference-in-differences approach of Heckman et al. (1998) for the staggered treatment adoption design and a Stata tool that implements the approach. This flexible conditional difference-in-differences approach is particularly useful for causal analysis of treatments with varying start dates and varying treatment durations. Introducing more flexibility enables the user to consider individual treatment periods for the treated observations and thus circumventing problems arising in canonical difference-in-differences approaches. The open-source flexpaneldid toolbox for Stata implements the developed approach and allows comprehensive robustness checks and quality tests. The core of the paper gives comprehensive examples to explain the use of the commands and its options on the basis of a publicly accessible data set.

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Who Benefits from GRW? Heterogeneous Employment Effects of Investment Subsidies in Saxony Anhalt

Eva Dettmann Mirko Titze Antje Weyh

in: IWH Discussion Papers, No. 27, 2017

Abstract

The paper estimates the plant level employment effects of investment subsidies in one of the most strongly subsidized German Federal States. We analyze the treated plants as a whole, as well as the influence of heterogeneity in plant characteristics and the economic environment. Modifying the standard matching and difference-in-difference approach, we develop a new procedure that is particularly useful for the evaluation of funding programs with individual treatment phases within the funding period. Our data base combines treatment, employment and regional information from different sources. So, we can relate the absolute effects to the amount of the subsidy paid. The results suggest that investment subsidies have a positive influence on the employment development in absolute and standardized figures – with considerable effect heterogeneity.

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

Matthias Brachert Eva Dettmann Mirko Titze

in: IWH Discussion Papers, No. 18, 2016

Abstract

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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Do Manufacturing Firms Benefit from Services FDI? – Evidence from Six New EU Member States

J. Damijan Crt Kostevc Philipp Marek Matija Rojec

in: IWH Discussion Papers, No. 5, 2015

Abstract

This paper focuses on the effect of foreign presence in the services sector on the productivity growth of downstream customers in the manufacturing sector in six EU new member countries in the course of their accession to the European Union. For this purpose, the analysis combines firm-level information, data on economic structures and annual national input-output tables. The findings suggest that services FDI may enhance productivity of manufacturing firms in Central and Eastern European (CEE) countries through vertical forward spillovers, and thereby contribute to their competitiveness. The consideration of firm characteristics shows that the magnitude of spillover effects depends on size, ownership structure, and initial productivity level of downstream firms as well as on the diverging technological intensity across sector on the supply and demand side. The results suggest that services FDI foster productivity of domestic rather than foreign controlled firms in the host economy. For the period between 2003 and 2008, the findings suggest that the increasing share of services provided by foreign affiliates enhanced the productivity growth of domestic firms in manufacturing by 0.16%. Furthermore, the firms’ absorptive capability and the size reduce the spillover effect of services FDI on the productivity of manufacturing firms. A sectoral distinction shows that firms at the end of the value chain experience a larger productivity growth through services FDI, whereas the aggregate positive effect seems to be driven by FDI in energy supply. This does not hold for science-based industries, which are spurred by foreign presence in knowledge-intensive business services.

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Isolation and Innovation – Two Contradictory Concepts? Explorative Findings from the German Laser Industry

Wilfried Ehrenfeld T. Pusch Muhamed Kudic

in: IWH Discussion Papers, No. 1, 2015

Abstract

We apply a network perspective and study the emergence of core-periphery (CP) structures in innovation networks to shed some light on the relationship between isolation and innovation. It has been frequently argued that a firm’s location in a densely interconnected network area improves its ability to access information and absorb technological knowledge. This, in turn, enables a firm to generate new products and services at a higher rate compared to less integrated competitors. However, the importance of peripheral positions for innovation processes is still a widely neglected issue in literature. Isolation may provide unique conditions that induce innovations which otherwise may never have been invented. Such innovations have the potential to lay the ground for a firm’s pathway towards the network core, where the industry’s established technological knowledge is assumed to be located. The aim of our paper is twofold. Firstly, we propose a new CP indicator and apply it to analyze the emergence of CP patterns in the German laser industry. We employ publicly funded Research and Development (R&D) cooperation project data over a period of more than two decades. Secondly, we explore the paths on which firms move from isolated positions towards the core (and vice versa). Our exploratory results open up a number of new research questions at the intersection between geography, economics and network research.

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