First- and second-order additionality and learning outcomes in collaborative R&D programs

• Published in: Research policy Vol. 37; no. 1; pp. 59 - 76
• Main Authors: Autio, Erkko, Kanninen, Sami, Gustafsson, Robin
• Format: Journal Article
• Language: English
• Published: Amsterdam Elsevier B.V 01.02.2008; Elsevier; Elsevier Sequoia S.A
• Series: Research Policy
• Subjects: Additionality; Business studies; Collaboration; Collaborative R&D programs; Impact analysis; Innovation policy; Innovations; Inventions; Knowledge spillover; Knowledge transfer; Learning; Learning externality; R&D; Research & development; Research and development; Spillovers; Studies; Finland; Additionality; Innovation policy; Collaborative R&D programs; Learning externality; Knowledge spillover
• ISSN: 0048-7333; 1873-7625
• DOI: 10.1016/j.respol.2007.07.012

In this paper, we distinguish between firm-level learning effects that result from ‘first-order’ and ‘second-order’ additionalities in innovation policy interventions. ‘First-order’ additionalities represent direct firm-level R&D subsidies, whereas ‘second-order’ additionalities result from knowledge spill-overs, horizontal knowledge exchanges between firms, and from other meso- or community-level effects. Analyzing data from collaborative R&D programs in Finland, we show that enhancing identification with a community of practice among R&D program participants (proxy for second-order additionality) enhances firm-level learning outcomes beyond those resulting from direct R&D subsidy (proxy for first-order additionality). Learning effects facilitated by second-order additionality are not confined to technological learning alone, encompassing also business and market learning. We also show that aspects of program implementation enhance identification with a community of practice, which then mediate the relationship between program implementation and firm-level learning outcomes.