Knowledge to Money: Assessing the Business Performance Effects of Publicly Funded R&D Grants 1

Of particular importance in terms of business engagement in the UK Research Councils are Innovate UK, which provides grants to firms and other organizations to support innovation, and the Engineering and Physical Science Research Council (EPSRC), which funds university research, often in collaborati...

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Bibliographic Details
Published inIfo DICE report Vol. 17; no. 4; pp. 20 - 25
Main Authors Vanino, Enrico, Roper, Stephen, Becker, Bettina
Format Journal Article
LanguageEnglish
Published Munich Ifo Institute 01.12.2019
Subjects
Collaboration
Councils
Employment
Funding
Innovations
Manufacturing
Participation
Physical sciences
Productivity
R&D
Research & development
Subsidies
Trends
United Kingdom > UK
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Summary:Of particular importance in terms of business engagement in the UK Research Councils are Innovate UK, which provides grants to firms and other organizations to support innovation, and the Engineering and Physical Science Research Council (EPSRC), which funds university research, often in collaboration with industry. Here, for the first time we link data on all UK Research Council grants with longitudinal data on the performance of all UK firms to assess the impacts on business growth of participating in UK Research Council funded projects but also to explore how growth impacts vary depending on firm characteristics, project participants, and the particular Research Council providing finance. The largest funders were the Engineering and Physical Sciences Research Council (EPSRC), supporting 22 percent of total projects and allocating almost 30 percent of the overall funds available, followed by the Medical Research Council - funding only 10 percent of the total number of projects but accounting for more than 22 percent of the total value - and Innovate UK, responsible for the support of almost 20 percent of all projects and allocating more than 15 percent of all resources. Differentiating between high-tech/lowtech manufacturing firms and between Knowledge Intensive Services (KIS) and non-KIS companies, we find that the effects on employment are relatively similar for high-tech compared with low-tech manufacturing firms, while the substantial effects on medium-term turnover growth, almost 30 percent, are experienced only by high-tech firms.
ISSN:2511-7815
2511-7823