Does public-private S&T collaboration have an effect on competitiveness?

2. Does public-private S&T collaboration have an effect on competitiveness? some empirical findings from the Netherlands Tom Poot (A.P.Poot@tbm.tudelft.nl)

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

4. 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

5. 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)

6. 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?

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

8. 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

9. 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)

10. 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?

11. 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)

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

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

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

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

16. Knowledge transfer and S&T-collaboration effectiveness:

17. 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

18. 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 (TTI’s) • Much emphasis on applied scientific research

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