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R&D subsidies & external collaborative breadth: Differential gains and the role of collaboration experience
Authors:Gary Chapman  Abel Lucena  Sergio Afcha
Institution:1. Department of Strategic Management and Marketing, De MontFort University, Leicester, LE2 7BY, UK;2. Business Economics Department, University of the Balearic Islands, Palma 07122, Spain;3. Centre for Research on Welfare Economics (CREB), Barcelona, Spain;4. Department of Applied Economics, University of Valencia, Valencia 46022, Spain
Abstract:External collaboration breadth is important for firms to acquire the knowledge needed to innovate. In this paper, we combine cross-sectional and longitudinal data from the Spanish Panel of Technological Innovation Survey (PITEC) to examine the indirect impact of R&D subsidies on firm external collaboration breadth. We contribute to understanding of the indirect impacts of R&D subsidies by first providing strong evidence of an economically significant average positive impact of R&D subsidies on firm external collaboration breadth. Second, our results advance understanding of the differential impacts of R&D subsidies by revealing the vast heterogeneity of the impact at the firm level, where approximately only half of treated firms experience a positive collaboration impact from R&D subsidies, while the remainder experience no impact or a negative effect. Finally, we advance understanding of the characteristics explaining the differential impact of R&D subsidies on external collaboration breadth by utilising the organisational learning literature to demonstrate the important role of firm collaboration experience.
Keywords:External collaboration breadth  R&D subsidies  Differential effects  Collaboration experience  Innovation policy  Treatment effects
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