Does public-private S&T collaboration have an effect on competitiveness? some empirical findings from the Netherlands Tom Poot ( )

Introduction Why knowledge transfer, why collaboration? Relation with S&T policies Public private S&T-collaboration: empirical evidence

Why knowledge transfer? (on the national level) Absorptive capacity as a necessity (human capital) Knowledge spillovers Market failure / positive externalities / social return on R&D Knowledge intensive production as a comparative advantage

Why collaboration? (on the firm level) Absorptive capacity as a necessity Reduce spillovers / appropriate economic rents of R&D Reduction of R&D-costs Reduction of technological and market risks Achieve knowledge needed to develop advanced products and services (technological opportunity)

Outline presentation In this presentation: First we will give a brief overview of the S&T-policy measures of the Ministry of economic affairs aiming at knowledge transfer. Second we present the main results of the research project and draw some general conclusions. Last we will talk about the main question: Does public S&T collaboration have an effect on competitiveness and is it worth to carry on with such S&T policy measures?

Overview of S&T policy, aimed at knowledge transfer, Some characteristics: at some point very detailed: an attempt to cover the whole innovation process:

Overview of S&T policy, aimed at knowledge transfer, Some characteristics: at some point very detailed: an attempt to cover the whole innovation process: S&T-collaboration Abroad (EU-programs Within the Netherlands Clustering of public-private research (STW, TTI's) SME's New technologies, start-up firms Venture capital, levelling financial risks

Overview of S&T policy, aimed at knowledge transfer, Some characteristics: At some point very detailed: an attempt to cover the whole innovation process On the other hand very general: large proportion of total budget devoted to a general tax credit scheme: WBSO (43% of total budget)

Knowledge transfer and S&T-collaboration Research project of Ministry of Economic affairs in the Netherlands Main topics of research project (among others): To what extent is public S&T a substitute or complement for private S&T seen form the perspective of firms? If public S&T policies are a complement, in what way and to what extent will they affect the economic performance of firms?

Knowledge transfer and S&T-collaboration The decision model: no collaboration only collaboration with public financed research institute (PuK) only collaboration with private financed research institutes (other firms, PrK) collaboration with both types of research institutes (PuK+PrK)

Knowledge transfer and S&T-collaboration The decision model:

Knowledge transfer and S&T-collaboration Knowledge transfer and co-operation: a first description:

Knowledge transfer and S&T-collaboration Knowledge transfer and co-operation: a first description:

Knowledge transfer and S&T-collaboration Patterns of collaboration:

Knowledge transfer and S&T-collaboration effectiveness:

Final remarks / conclusions From empirical results: Public KD-co-operation to a certain extent compliment of private KD-co-operation No difference between public and private types of KD-co- operation Effectiveness: on average KD-co-operation leads to 6% increase of value added per employee Almost 75% percent of innovative firms not collaborating

General remarks about S&T policy in the Netherlands: very detailed: many different policy measures very general: 43% total budget tax credit (WBSO) clustering of scientific research on typical fields of technology (TTIs) Much emphasis on applied scientific research

Should we continue with S&T policies aimed at knowledge transfer?