Abstract #1: Investment in innovation is characterized by uncertain and often intangible outcomes, knowledge spillovers as well as information asymmetries between managers vis-à-vis lenders and investors. These properties affect the financing of innovation. Financing constraints occur when firms' innovation activities are affected negatively by the lack of internal financing and constrained access to external financing, including high cost of debt or a shortage of equity. The extent to which a firm's innovation activities are affected by… [read more]

Abstract: Corporate research and development constitutes one of the main sources of innovation. Recent research, however, discusses a decline in corporate research and its implications for technological progress. The contribution of this study is to model research & development (R&D) decisions in an R&D investment model that allows the analysis of firms’ engagement in research (R) as compared to development (D) activities. The model predicts higher investments in both activities for larger firms, but it also shows that research intensity, i.e.… [read more]

Abstract: Multiple institutional affiliations occur when an academic belongs to more than one organisation. Recent research shows an increase in multiple affiliations, but evidence on roles and motivations is mainly anecdotal. We develop in this study a typology of co-affiliations which identifies four types based on their purpose and origin. We draw on results from a unique international survey on academics in three major science nations (the UK, Germany and Japan) to study the different drivers for the four types of co-affiliations. The… [read more]

Abstract: Research suggests that public subsidies for newly founded firms have a positive effect on follow-on financing, in particular on Venture Capital (VC), through providing certification and early-stage liquidity. This study shows that the various sources of VC value public start-up subsidies differently. It is the first to differentiate between distinct types of investors who pursue different investment strategies. We show for a large sample of knowledge-intensive start-ups that there is indeed a correlation between subsidies and all… [read more]

Abstract: This study investigates the effect of competitive project-funding on researchers' publication outputs. Using detailed information on applicants at the Swiss National Science Foundation  and their proposal evaluations, we employ a case-control design that accounts for individual heterogeneity of researchers and selection into treatment (e.g. funding). We estimate the impact of grant award on a set of output indicators measuring the creation of new research results (the number of peer-reviewed articles), its relevance (number of… [read more]

Abstract This study provides the first systematic, international, large‐scale evidence on the extent and nature of multiple institutional affiliations on journal publications. Studying more than 15 million authors and 22 million articles from 40 countries we document that: In 2019, almost one in three articles was (co‐)authored by authors with multiple affiliations and the share of authors with multiple affiliations increased from around 10% to 16% since 1996. The growth of multiple affiliations is prevalent in all fields and it is stronger in… [read more]

New knowledge-intensive firms contribute to innovation, competition, and employment growth, but externalities like knowledge spillovers can prevent entrepreneurs from appropriating the full returns from their investments. In addition, uncertainty and information asymmetry pose challenges for financing. Public policy programs therefore aim to support start-ups. This study evaluates the effects of participation in such programs on the performance of start-ups in high-tech and knowledge-intensive sectors that were founded in Germany between 2005… [read more]

The question whether alcohol consumption affects violent crime is a crucial one, and may lead to a demand for alcohol availability regulation. In this study, we explore the effects of a state-level ban on late-night off-premise alcohol sales on recorded violent crime incidents. We study the ban that was in effect from 2010-2017 in the German state Baden-Württemberg. The results show that that the policy reduced both late-night simple assault and aggravated assault, but had no significant effect on late-night rape or robbery. [read more]

The participation of women in top-level corporate boards or rather the lack of it is subject to intense public debate. Countries are considering legally binding quotas to increase the share of women on boards or have already implemented such rules. While research on board diversity suggests positive effects on corporate governance and even firm performance, the mechanisms through which these benefits materialize remain mostly speculative. This study focuses on boards of directors in a large sample of listed companies in 15 European countries… [read more]

Assessing the impact of publicly funded scientific research in entrepreneurial ecosystems is of great interest for science and entrepreneurship policy. Knowledge from academic research flows into the private sector through publications, patents, and researcher mobility as well as through direct interactions between founders and researchers at public research institutions (PRIs). New technology-based firms (NTBFs) are generally praised for high innovativeness despite their resource constraints and liability of newness. This study therefore… [read more]

Academic consulting is an important and effective means of knowledge transfer between the public and private sectors. It offers opportunities for research application but also raises concerns over potentially negative consequences for academic research and its dissemination. For a sample of social, natural, and engineering science academics in Germany, and controlling for the selection into consulting, we investigate the effect of consulting with public and private sector organizations on research performance. While previous research suggested… [read more]

Access to financial resources is crucial for young firms to strive. To foster innovation and growth in these firms, governments address financing constraints by initiating public support programs. For such financial support to be effective, it is, however, important that firms be able to augment publicly provided resources with additional means. This study examines the relation between new ventures’ subsidy receipt and long-term bank loans. Studying new ventures founded between 2005 and 2009 in Germany, we test whether the subsidy itself… [read more]

R&D collaborations that combine resources and exploit complementary expertise contribute to the successful creation and implementation of new knowledge. Collaborative R&D may further be a way in which firms cope with financing constraints. Based on panel data for a large sample of R&D-active firms, findings provide empirical support for this hypothesis. Results show that collaborating firms rely less on internal funding for research than others even when accounting for firms’ selection into collaborations. [read more]

Research and product or process development are two distinct, yet complementary innovation activities. Making use of a specific grant-based policy design that explicitly distinguishes between research projects, development projects, and mixed R&D projects, this study estimates the direct and cross scheme effects on both research and development investments of recipient firms. Positive cross scheme effects can be expected when research and development activities are complementary and financing constraints are more binding for research than for… [read more]

This study sheds light on the unexplored phenomenon of multiple institutional affiliations using scientific publications. Institutional affiliations are important in the organisation and governance of science. Multiple affiliations may alter the traditional framework of academic employment and careers and may require a reappraisal of institutional assessment based on research outcomes of affiliated staff. Results for authors in three major science and technology nations (Germany, Japan and the UK) and in three fields (biology, chemistry, and… [read more]

Academics are increasingly encouraged to acquire external grants to finance their research, and often hold grants from multiple funders concurrently to ensure the continuity of their work. However, there are concerns that inefficiencies occur when funding is received from multiple sponsors, especially when this originates from different sectors. This study investigates complementarities between public/non-profit and private sector sources of research funding with regard to academic output in terms of publications, research impact and research… [read more]

We present empirical evidence suggesting that weak tax enforcement proxied by the extent of tax evasion in a country acts like a lower corporate tax rate in attracting profits of multinational corporations. [read more]

This study investigates induced productivity effects of firms introducing new environmental technologies. The literature on within-firm organisational change and productivity suggests that firms can achieve higher productivity gains from adopting new technologies if they adapt their organisational structures. Such complementarity effects may be of particular importance for the adoption of greenhouse gas (GHG) abatement technologies. The adoption of these technologies is often induced by public authorities to limit the social costs of climate… [read more]

R&D collaboration facilitates the pooling of complementary skills, learning from the partner as well as the sharing of risks and costs. Research therefore stresses the positive relationship between collaborative R&D and innovation performance. Fewer studies address the potential drawbacks of collaborative R&D. Collaborative R&D comes at the cost of coordination and monitoring, requires knowledge disclosure, and involves the risk of opportunistic behavior by the partners. Thus, while for lower collaboration intensities the net gains can be high,… [read more]