Abstract
This study contributes to the understanding of the speed of the effects of publicly funded research – R&D grants – on firm R&D, innovation, and innovation behaviour. We argue that while the speed of the positive effects on R&D (i.e. input additionality; IA) tightly relates to public support programmes’ requirement of private contribution in R&D spending, the positive effects on innovation (i.e. output additionality; OA) and innovation behaviour (i.e. behavioural additionality;
BA) are temporally delayed, linked to the explorative nature of learning associated with publicly funded projects, and obstacles to changes in the innovation behaviour of firms. We empirically test our theoretical framework for a sample of R&D intensive, UK firms to find that while IA occurs in the year following receipt of R&D grants, BA takes three years after receipt of R&D
grants to occur. We do not find that grants have a positive effect on either product or process innovation. In measuring BA, we employ a ‘classical’ treatment and control group evaluation without relying on firms’ perceptions of how the receipt of grants affected their innovation behaviour. Our findings have significant implications for both management practice and policy.
BA) are temporally delayed, linked to the explorative nature of learning associated with publicly funded projects, and obstacles to changes in the innovation behaviour of firms. We empirically test our theoretical framework for a sample of R&D intensive, UK firms to find that while IA occurs in the year following receipt of R&D grants, BA takes three years after receipt of R&D
grants to occur. We do not find that grants have a positive effect on either product or process innovation. In measuring BA, we employ a ‘classical’ treatment and control group evaluation without relying on firms’ perceptions of how the receipt of grants affected their innovation behaviour. Our findings have significant implications for both management practice and policy.
| Original language | English |
|---|---|
| Number of pages | 25 |
| Journal | British Journal of Management |
| Early online date | 18 Oct 2023 |
| DOIs | |
| Publication status | Published - 18 Oct 2023 |
Bibliographical note
Funding Information:The authors would like to thank Nick Pearce, Nigel Driffield and participants of the 81st Annual Meeting of the Academy of Management for their insightful comments on the paper (July‐August 2021). The authors also thank Innovate UK for facilitating the data collection. Chris Dimos acknowledges financial support for his PhD studies from the Economic and Social Research Council [grant number ES/P000630/1].
Publisher Copyright:
© 2023 The Authors. British Journal of Management published by John Wiley & Sons Ltd on behalf of British Academy of Management.
Keywords
- R&D Grants
- Input Additionality
- Output Additionality
- Behavioural Additionality
- Organisational Learning
- Publicly Funded Research
ASJC Scopus subject areas
- Management of Technology and Innovation
- Strategy and Management
- Economics and Econometrics
