Measuring the impact of cluster programmes Presentation at the NGP Cluster Excellence Conference 2011 May 26 th 2011 By Michael Mark

DAMVAD, Economics

Baseline of this presentation A national and international wish to conduct solid and quantitative impact assessments and evaluations. Return on investment from public funding. Fact based knowledge about what works and for whom. Quantifying and explaining effects are at the core of evaluating socio-economical programmes.

Objectives of the innovation networks To strengthen public-private collaboration and knowledge transfer between public universities and private companies on innovation and R&D. To strengthen innovation and R&D in Danish companies.

R&D collaboration increase productivity Source: DASTI(2011) (in Danish): Økonomiske effekter af erhvervssamarbejde om forskning, udvikling og innovation

Return on investment from innovation and R&D Source: DASTI (2010) (in Danish): Produktivitetseffekter af erhvervslivets forskning, udvikling og innovation. Return on investment An additional euro invested in company innovation 30 % An additional euro invested in company R&D 66 %

Impacts of participation in innovation networks

More than 4 times as many new innovators Participation implies learning externalities Participants gain new knowledge Participation in common idea generation

Actual growth as a consequence of participation Number of innovative companies

More than 4 times as many new collaborators Participation implies increased networks externalities Provide opportunities to identify collaboration partners

Increased participation in other programmes Providing the participating companies with the overview of other programmes and contacts Turning inexperienced companies into experts

How to measuring impacts Isolating the impact of participation in an innovation network Create a statistically counterfactual situation Concept is well known from medical science – where a medical intervention is simulated Transferred to socio-economic evaluations and impact assessments

Comparing ”alike” with ”alike”

Steps in creating a counterfactual situation

The trick: matching control and treatment groups

Contakt Michael Mark P: Possibilities in knowledge DAMVAD Badstuestræde København K Denmark