ZEW Discussion Papers DP No. 19-006: Do Companies Benefit from Public Research Organizations? The Impact of the Fraunhofer Society in Germany

Among available policy levers to boost innovation, investment in applied research organisations has received little empirical attention. In this paper, we analyse the case of the Fraunhofer Society, the largest public applied research organization in Germany. We analyse whether project interaction with Fraunhofer affects the performance and strategic orientation of firms. To that end, we assemble a unique dataset based on the confidential Fraunhofer-internal project management system and merge it with the German contribution to the Community Innovation Survey , which contains panel information on firm performance. Using instrumental variables that exploit the scale heteroscedasticity of...

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