Roper, S., Vanino, E. orcid.org/0000-0002-4740-1501 and Hewitt-Dundas, N. (2025) Trade-offs and complementarities between regional, sectoral, and national support policies for firms’ innovation. Industrial and Corporate Change. dtae046. ISSN 0960-6491
Abstract
Public support for R&D can play a crucial role in addressing systemic failures that block the functioning of innovation systems, whether national, sectoral or region-specific. However, little is known about the trade-offs and complementarities between sub-national and national innovation policies. Here, we consider trade-offs and complementarities between national R&D support measures managed by UK Research and Innovation (UKRI), regional support provided by the Northern Ireland government, and sectoral support provided by the UK’s Catapult network. Employing a propensity score matching combined with a difference-in-difference event study analysis, we find evidence of dynamic complementarities between sub-national and national innovation policies. Both regional and sectoral innovation support measures have positive effects on both employment and turnover growth. However, each sub-national policy targets somewhat different groups of firms to national policy measures. Strong static and dynamic complementarities are also evident between sectoral and national support, as firms initially supported by the Catapults are significantly more likely to secure national R&D funding in the future.
Metadata
Item Type: | Article |
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Authors/Creators: |
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Copyright, Publisher and Additional Information: | © The Author(s) 2025. This is an Open Access article distributed under the terms of the Creative Commons Attribution License (https://creativecommons.org/licenses/by/4.0/), which permits unrestricted reuse, distribution, and reproduction in any medium, provided the original work is properly cited. |
Keywords: | R&D policy; Innovation policy; Policy complementarities; Sub-national innovation policy |
Dates: |
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Institution: | The University of Sheffield |
Academic Units: | The University of Sheffield > Faculty of Social Sciences (Sheffield) > Department of Economics (Sheffield) |
Depositing User: | Symplectic Sheffield |
Date Deposited: | 19 Dec 2024 11:16 |
Last Modified: | 27 Jan 2025 16:39 |
Status: | Published online |
Publisher: | Oxford University Press |
Refereed: | Yes |
Identification Number: | 10.1093/icc/dtae046 |
Open Archives Initiative ID (OAI ID): | oai:eprints.whiterose.ac.uk:220717 |