New Roles for Key Players
Edited by Willem Molle and Julia Djarova
Chapter 6: The Behavioural Additionality of Business R & D Subsidies: Theoretical Considerations and Empirical Results for Flanders
6. The behavioural additionality of business R&D subsidies: theoretical considerations and empirical results for Flanders Geert Steurs, Arnold Verbeek and Elissavet Lykogianni INTRODUCTION The objectives of the Lisbon Agenda have underlined the importance of innovation in making Europe ‘the most dynamic and competitive knowledgebased economy in the world’ by 2010. In order to fulfil the target of achieving a 3 per cent average economic growth and the creation of 20 million jobs by 2010, a range of policy measures has been proposed. One of the main policy areas that has been targeted by these measures is that of innovation. As a consequence, many countries in Europe have increased their public support for R&D and innovation activities by the business sector. This support, by means of subsidies, beneficial tax treatment of R&D investments and many other kinds of policy measures, should increase the competitiveness of the business sector as well as the productivity and growth of the overall economy. Within this context of increased public support for R&D and innovation, the analysis of the efficiency and effectiveness of such policies has become very important due to public accountability issues and the scarcity of public funds (OECD, 2006; Barberis, 1988). Governments are therefore increasingly interested in assessing the ‘additionality’ of public support for business R&D. In other words, they often seek to answer the question ‘What difference does public support make?’ Until recently, the analysis of the ‘additionalities’ of public support focused on either the calculation...
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