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First- and second-order additionality and learning outcomes in collaborative R&D programs |
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| Authors: | Erkko Autio Sami Kanninen |
| Institution: | a Imperial College, Tanaka Business School, South Kensington, London SW7 2AZ, United Kingdom b Advansis Oy, Itälahdenkatu 22 A b FIN-00210 Helsinki Finland c Helsinki University of Technology, PO Box 9600, 02015 TKK, Espoo, Finland |
| Abstract: | In this paper, we distinguish between firm-level learning effects that result from ‘first-order’ and ‘second-order’ additionalities in innovation policy interventions. ‘First-order’ additionalities represent direct firm-level R&D subsidies, whereas ‘second-order’ additionalities result from knowledge spill-overs, horizontal knowledge exchanges between firms, and from other meso- or community-level effects. Analyzing data from collaborative R&D programs in Finland, we show that enhancing identification with a community of practice among R&D program participants (proxy for second-order additionality) enhances firm-level learning outcomes beyond those resulting from direct R&D subsidy (proxy for first-order additionality). Learning effects facilitated by second-order additionality are not confined to technological learning alone, encompassing also business and market learning. We also show that aspects of program implementation enhance identification with a community of practice, which then mediate the relationship between program implementation and firm-level learning outcomes. |
| Keywords: | Additionality Collaborative R& D programs Innovation policy Learning externality Knowledge spillover |
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