Demand-side vs. supply-side technology policies: Hidden treatment and new empirical evidence on the policy mix

By Marco Guerzoni, Emilio Raiteri. 2015

367 citations recorded by the source corpus.

This paper provides new empirical evidence about the impact of various technological policies upon firms’ innovative behaviour. We take into consideration the role of policies for innovative activities and we focus on their interaction. While supply-side policies such as R&D subsidies and tax credits have been both extensively discussed in the literature and empirically investigated, the analysis of innovative public procurement is a growing trend in the literature, which still lacks robust empirical evidence. In this paper, we replicate the existing results on supply-side policies, surmise fresh empirical evidence on the outcome of innovative public procurement, and address the issue of possible interaction among the various tools. When controlling for the interaction with other policies, supply-side subsidies cease to be as effective as reported in previous studies and innovative public procurement seems to be more effective than other tools. The preliminary evidence suggests that technology policies exert the highest impact when different policies interact.

Subfields: Economics and Econometrics, Strategy and Management

View Paper: https://www.semanticscholar.org/paper/8e66e4c340adc4f35c3cb203624cb8b1c64a5de6

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Citations in the corpus

Harnessing theories of the policy process for analysing the politics of sustainability transitions: A critical survey (2017, background): “Similarly, the innovation studies community also started to engage with policy mixes for R&D in terms of identifying instrument combinations most effective in increasing the quantity and performance of research investments (Guerzoni and Raiteri, 2015; Nauwelaers et al., 2009).”
Inventor Networks in Renewable Energies: The Influence of the Policy Mix in Germany (2016, background): “Guerzoni and Raiteri (2014) show that in the presence of public procurement and direct subsidies the innovative output is higher than the sum of both instruments, emphasizing the importance of interacting policy and the presence of a market for the technologies.”
Innovation policy: What, why, and how (2017, background): “While the instruments considered so far may be seen as focusing mostly on the supply of innovations, recently the role of demand for innovation has got more attention (Guerzoni and Raiteri, 2015; Edler, 2016) at national and regional levels (Kaiser and Kripp, 2010; OECD, 2011; UNU-MERIT, 2012).”
Do policy mix characteristics matter for low-carbon innovation? A survey-based exploration of renewable power generation technologies in Germany (2018, background): “30 to policy mixes (Guerzoni and Raiteri, 2015; Cantner et al., 2016) but suggesting a broader scope of future policy mix research.”
Additionality or crowding-out? An overall evaluation of public R&D subsidy on private R&D expenditure (2016, background): “Our study partly relates to Görg et al. (2008), Hottenrott et al. (2014) and Guerzoni and Raiteri (2015).”
Policy mixes for sustainability transitions: An extended concept and framework for analysis (2016, background): “More recently, innovation studies have also started to highlight interactions (Flanagan et al., 2011; Guerzoni and Raiteri, 2015; Nauwelaers et al., 2009).”
Addressing barriers to eco-innovation: Exploring the finance mobilisation functions of institutional innovation intermediaries (2016, background): “…certain industries, setting up institutions tomake investments more profitable (Borrás and Edquist, 2013;Wonglimpiyarat, 2011) or using direct instruments such as public procurement for innovation (Edler and Georghiou, 2007; Edquist and Zabala-Iturriagagoitia, 2012; Guerzoni and Raiteri, 2015).”