EU framework programmes: positive and negative effects on member states' innovation performance
DOI:
https://doi.org/10.24136/eq.2021.017Keywords:
innovation performance, national innovative capacity, EU investmentAbstract
Research background: Seeking to ensure competitiveness in the global market, the EU is constantly improving its innovation policy. Compared to other EU initiatives, the Framework Programs for Research and Innovation (FPs) act as the main instrument with the longest history and the largest budget to boost member states' innovation performance. Despite the initial presumptions that these financial inflows should bring positive and constructive effects, the results significantly diverge across the countries with highly uneven and incoherent progress. Therefore, complex and reliable tools must be adopted to evaluate the long-term influence of EU investment and the reasons which distort the innovation performance in separate member states.
Purpose of the article: The purpose of this article is to evaluate the influence of EU investment on its member states? innovation performance by using a redeveloped national innovative capacity framework and including technological, non-technological and commercial innovative output.
Methods: Panel unit root tests were used to assess the time series stationarity. Autoregressive distributed lag models helped in calculating the long-term influence of EU investment on member states? innovation performance. Finally, by employing dummies, it was analysed how this influence varied over time and across different countries.
Findings & value added: The findings provide evidence that EU investment exerts positive long-term influence on the technological innovative output proxied as total, business and higher education institutions? patent applications, as well as product and process innovations. The effects were also positive on trademarks and marketing, and organisational innovations. However, small but negative influence was found in the case of patent applications by the government sector and the exports of hi-tech products and knowledge-intensive services. These insights may serve in the designing process of the specific instruments and the future innovation policies, which would bring the maximum benefit for the society and economy.
Downloads
References
Adam, F. (2014). Measuring national innovation performance: the innovation Union Scoreboard revisited. Springer.
DOI: https://doi.org/10.1007/978-3-642-39464-5
View in Google Scholar
Aguiar, L., & Gagnepain, P. (2017). European cooperative R&D and firm performance: evidence based on funding differences in key actions. International Journal of Industrial Organization, 53, 1?31. doi: 10.1016/j.ijindorg.2016.12 .007.
DOI: https://doi.org/10.1016/j.ijindorg.2016.12.007
View in Google Scholar
Alquézar Sabadie, J., & Kwiatkowski, C. (2017). The community innovation survey and the innovation performance of enterprises funded by EU?s framework programmes. Journal for Research and Technology Policy Evaluation, 44, 3?16. doi: 10.22163/fteval.2017.272.
DOI: https://doi.org/10.22163/fteval.2017.272
View in Google Scholar
Andrijauskiene, M., & Dumciuviene, D. (2018). National culture as a determinant of firms? innovative performance. Forum Scientiae Oeconomia, 6(1), 47?68.
View in Google Scholar
Arnold, E., ?ström, T., Boekholt, P., Brown, N., Good, B., Holmberg, R., & van der Veen, G. (2008). Impacts of the Framework Programme in Sweden. Stockholm: VINNOVA.
View in Google Scholar
Baesu, V., Albulescu, C. T., Farkas, Z. B., & Drăghici, A. (2015). Determinants of the high-tech sector innovation performance in the European Union: a review. Procedia Technology, 19, 371?378. doi: 10.1016/j.protcy.2015.02.053.
DOI: https://doi.org/10.1016/j.protcy.2015.02.053
View in Google Scholar
Barajas, A., Huergo, E., & Moreno, L. (2012). Measuring the economic impact of research joint ventures supported by the EU Framework Programme. Journal of Technology Transfer, 37(6), 917?942. doi: 10.1007/s10961-011-9222-y.
DOI: https://doi.org/10.1007/s10961-011-9222-y
View in Google Scholar
Biegelbauer, P., Dinges, M., Wang, A., Weber, M., Ploder, M., Polt, W., Streicher, J., Unger, M., Fischl, I., Kaufmann, P., Gassler, H., Konzett-Smoliner, S., & Schuch, K. (2018). Evaluation of H2020, EUREKA, COSME, EEN and ERA programmes in Austria. Final report. AIT Austrian Institute of Technology Center for Innovation Systems & Policy.
View in Google Scholar
Boekholt, P. (2009). Impact of the European Framework Programme in the Netherlands, Technopolis Group. Retrieved from: https://www.tweedekamer.nl/do wnloads (05.12.2019).
View in Google Scholar
Bondonio, D., Biagi, F., & Stancik, J. (2016). Counterfactual impact evaluation of public funding of innovation, investment and R&D (No. JRC99564). Joint Research Centre.
View in Google Scholar
Bruno, N., & Kadunc, M. (2019). Impact pathways: tracking and communicating the impact of the European Framework Programme for research and innovation. Journal for Research and Technology Policy Evaluation, 47, 62?71. doi: 10.22163/fteval.2019.330.
DOI: https://doi.org/10.22163/fteval.2019.330
View in Google Scholar
Čučković, N., & Vučković, V. (2018). EU R&D funding as a way of incentivizing innovation of SMEs: a review of impacts. Croatian Economic Survey, 20(2), 97?127. doi: 10.15179/ces.20.2.4.
DOI: https://doi.org/10.15179/ces.20.2.4
View in Google Scholar
Čučković, N., & Vučković, V. (2021). The effects of EU R&I funding on SME innovation and business performance in new EU member states: firm-level evidence. Economic Annals, 66(228), 7?41. doi: 10.2298/EKA2128007C.
DOI: https://doi.org/10.2298/EKA2128007C
View in Google Scholar
DASTI (2015). Effects of participation in EU framework programmes for research and technological development. Copenhagen: DASTI.
View in Google Scholar
Dziallas, M., & Blind, K. (2019). Innovation indicators throughout the innovation process: an extensive literature analysis. Technovation, 80, 3?29. doi: 10.1016/ j.technovation.2018.05.005.
DOI: https://doi.org/10.1016/j.technovation.2018.05.005
View in Google Scholar
Ege, A., & Ege, A. Y. (2019). How to create a friendly environment for innovation? A case for Europe. Social Indicators Research, 144(1), 451?473. doi: 10.1007/s11205-018-2039-4.
DOI: https://doi.org/10.1007/s11205-018-2039-4
View in Google Scholar
European Commission (2010). Evaluation of the sixth framework programmes for research and technological development 2002-2006. Retrieved from https://ec.europa.eu/info/research-and-innovation/strategy/support-policy-maki ng/support-eu-research-and-innovation-policy-making/evaluation-impact-asses sment-and-monitoring/past-framework-programmes_en#fp6 (03.02.2020).
View in Google Scholar
European Commission (2016). The contribution of the Framework Programmes to major innovations, report to the European Commission. Retrieved from https://op.europa.eu/en/publication-detail/-/publication/3fdc6ddc-0528-11e6-b7 13-01aa75ed71a1 (05.02.2020).
View in Google Scholar
European Commission (2017). Assessment of the Union added value and the economic impact of the EU Framework Programmes. Retrieved from http://ec.europa.eu/research/evaluations/pdf/archive/other_reports_studies_and_documents/assessment_of_the_union_added_value_and_the_economic_impact_of_the_eu_framework_programmes.pdf (14.10.2020).
View in Google Scholar
European Commission (2018). Mutual learning exercise on evaluation of business R&D grant schemes behavioural change, mixed-method approaches and big data. Retrieved from https://rio.jrc.ec.europa.eu/policy-support-facility/mle-evaluation-business-rd-grant-schemes (13.03.2020).
View in Google Scholar
European Commission (2020a). European Innovation Scoreboard 2002-2020. Retrieved from http://ec.europa.eu/DocsRoom/documents/17821 (21.10. 2020).
View in Google Scholar
European Commission (2020b). EU expenditure and revenue. Retrieved from https://ec.europa.eu/budget/graphs/revenue_expediture.html (15.01.2020).
View in Google Scholar
European Commission (2021). Horizon Europe. Retrieved from https://ec.europa.e u/info/horizon-europe_en (20.01.2021).
View in Google Scholar
European Parliament (2018). Overcoming innovation gaps in the EU-13 member states. Retrieved from https://www.europarl.europa.eu/RegData/etudes/ST UD/2018/614537/EPRS_STU(2018)614537_EN.pdf (30.01.2020).
View in Google Scholar
European Patent Office (2020). Patent statistics. Retrieved from https://www.epo.o rg/about-us/annual-reports-statistics/statistics.html (10.01.2020).
View in Google Scholar
Eurostat (2020). Official Eurostat database. Retrieved from https://ec.europa.eu/e urostat/data/database (10.01.2020).
View in Google Scholar
Fisher, R., Chicot, J., Domini, A., Misojic, M., Polt, W., Turk, A., & Goetheer, A. (2018). Mission-oriented research and innovation: assessing the impact of a mission-oriented research and innovation approach. European Commission EC.
View in Google Scholar
Fisher, R., Polt, W., & Vonortas, N. (2009). The impact of publicly funded research on innovation: an analysis of European Framework Programmes for research and development. Retrieved from http://www.eurosfaire.prd.fr/7pc/doc/ 1264491592_impact_public_research_innovation.pdf (20.11.2019).
View in Google Scholar
Fresco, L. O., Martinuzzi, A., Anvret, M., Bustelo, M., Butkus, E., Cosnard, M., & Nedeltcheva, V. (2015). Commitment and coherence. Ex-post-evaluation of the 7th EU Framework Programme (2007?2013). Brussels: Report of High Level Expert Group.
View in Google Scholar
Furman, J. L., Porter, M. E., & Stern, S. (2002). The determinants of national innovative capacity. Research Policy, 31(6), 899?933. doi: 10.1016/s0048-7333 (01)00152-4.
DOI: https://doi.org/10.1016/S0048-7333(01)00152-4
View in Google Scholar
Grabowski, W., & Staszewska-Bystrova, A. (2020). The role of public support for innovativeness in SMEs across European countries and sectors of economic activity. Sustainability, 12(10), 4143. doi: 10.3390/joitmc7020120.
DOI: https://doi.org/10.3390/su12104143
View in Google Scholar
Halkos, G., & Skouloudis, A. (2018). Corporate social responsibility and innovative capacity: intersection in a macro-level perspective. Journal of Cleaner Production, 182, 291?300. doi: 10.1016/j.jclepro.2018.02.022.
DOI: https://doi.org/10.1016/j.jclepro.2018.02.022
View in Google Scholar
Hottenrott, H., Lopes-Bento, C., & Veugelers, R. (2017). Direct and cross scheme effects in a research and development subsidy program. Research Policy, 46(6), 1118?1132. doi: 10.2139/ssrn.2555454.
DOI: https://doi.org/10.1016/j.respol.2017.04.004
View in Google Scholar
Janger, J., Schubert, T., Andries, P., Rammer, C., & Hoskens, M. (2017). The EU 2020 innovation indicator: a step forward in measuring innovation outputs and outcomes? Research Policy, 46(1), 30?42. doi: 10.1016/j.respol.2016.10.001.
DOI: https://doi.org/10.1016/j.respol.2016.10.001
View in Google Scholar
Khan, R., & Cox, P. (2017). Country culture and national innovation. Archives of Business Research, 5(2). doi: 10.14738/abr.52.2768.
DOI: https://doi.org/10.14738/abr.52.2768
View in Google Scholar
Kim, J., & Yoo, J. (2019). Science and technology policy research in the EU: from Framework Programme to HORIZON 2020. Social Sciences, 8(5), 153. doi: 10.3390/socsci8050153.
DOI: https://doi.org/10.3390/socsci8050153
View in Google Scholar
Law, S. H., Lee, W. C., & Singh, N. (2018). Revisiting the finance-innovation nexus: evidence from a non-linear approach. Journal of Innovation & Knowledge, 3(3), 143?153. doi: 10.1016/j.jik.2017.02.001.
DOI: https://doi.org/10.1016/j.jik.2017.02.001
View in Google Scholar
Lewandowska, M. S., Rószkiewicz, M., & Weresa, M. A. (2018). Additionality from public support to R&D and innovation in the European Union. In M. A. Weresa (Ed.). Strengthening the knowledge base for innovation in the European Union. Warsaw: PWN, 31?58.
View in Google Scholar
Meissner, D., Polt, W., & Vonortas, N. S. (2017). Towards a broad understanding of innovation and its importance for innovation policy. Journal of Technology Transfer, 42(5), 1184?1211. doi: 10.1007/s10961-016-9485-4.
DOI: https://doi.org/10.1007/s10961-016-9485-4
View in Google Scholar
Min, C. K. (2019). Applied econometrics: a practical guide. Routledge, Taylor & Francis group.
DOI: https://doi.org/10.4324/9780429024429
View in Google Scholar
Napiorkowski, T. M. (2018). The impact of Framework Programs on innovativeness in the European Union. In M. A. Weresa (Ed.). Strengthening the knowledge base for innovation in the European Union. Warsaw: PWN, 59?100.
View in Google Scholar
Nepelski, D., & Piroli, G. (2018). Organizational diversity and innovation potential of EU-funded research projects. Journal of Technology Transfer, 43(3), 615?639. doi: 0.1007/s10961-017-9624-6.
DOI: https://doi.org/10.1007/s10961-017-9624-6
View in Google Scholar
Nielsen K., Farla, K., Rosemberg Montes, Ch., Simmonds, P., & Wain, M. (2017). The role of EU funding in UK research and innovation. Retrieved from https://royalsociety.org/~/media/policy/Publications/2017/2017-05-technopolis-role-of-EU-funding-report.PDF (28.05.2020).
View in Google Scholar
Piirainen, K. A., Halme, K., Aström, T., Brown, N., Wain, M., Huovari, J., Kekäläinen, A., Lahtinen, H., Koskela, H., Arnold, E., Boekholt, P., Urth, H.. (2018). How can the EU Framework Programme for research and innovation increase the economic and societal impact of RDI funding in Finland? doi: 10.22163/fteval.2018.321.
DOI: https://doi.org/10.22163/fteval.2018.321
View in Google Scholar
Proksch, D., Haberstroh, M. M., & Pinkwart, A. (2017). Increasing the national innovative capacity: identifying the pathways to success using a comparative method. Technological Forecasting and Social Change, 116, 256?270. doi: 10.1016/j.techfore.2016.10.009.
DOI: https://doi.org/10.1016/j.techfore.2016.10.009
View in Google Scholar
Property Rights Alliance (2019). International property right index. Retrieved from https://www.internationalpropertyrightsindex.org/ (11.01.2020).
View in Google Scholar
Radicic, D., & Pugh, G. (2017). R&D programmes, policy mix, and the ?European paradox?: evidence from European SMEs. Science and Public Policy, 44(4), 497?512. doi: 0.1093/scipol/scw077.
DOI: https://doi.org/10.1093/scipol/scw077
View in Google Scholar
Rosemberg, C., Wain, M., Simmonds, P., Mahieu, B., & Farla, K. (2016). Ex-post evaluation of Ireland?s participation in the 7th EU Framework Programme. Final Report. Technopolis group.
View in Google Scholar
Rubio, E., Zuleeg F., Magdalinski E., Pellerin-Carlin, T., Pilati M., Ständer, P. (2019). Mainstreaming innovation funding in the EU budget. Study. Retrieved from https://op.europa.eu/s/n9eZ (17. 01. 2020).
View in Google Scholar
Ryan, T. K., & Schneider, J. W. (2016). Examining to what extent the source of competitive funding influences scientific impact. a case study of Danish EU FP7 funded projects. In 21st International Conference on Science and Technology Indicators-STI 2016. Book of Proceedings. Editorial Universitat Politecnica de Valencia.
View in Google Scholar
Schuch, K., Polt, W., Weber, M., Martinuzzi, A., Baumgartner, M., Glössl, J.. Herlitschka, S., Höglinger, A., Horvat, M., Lamprecht, K., Nowotny, H., Panholzer, G., Schmid, M., Stampfer, M., & Weiss, B. (2017). Fostering impact and sustainable collaboration in FP9 within a new common research, technology and innovation policy. Wien: Bundesministerium für Wissenschaft, Forschung und Wirtschaft. doi: 10.13140/RG. 2.2.31226.49603.
View in Google Scholar
Simmonds, P., Stroyan, J., Brown, N., & Horvath, A. (2010). The impact of the EU RTD Framework Programme on the UK. Brighton: Technopolis Ltd.
View in Google Scholar
Stojčić, N., Srhoj, S., & Coad, A. (2020). Innovation procurement as capability-building: evaluating innovation policies in eight Central and Eastern European countries. European Economic Review, 121, 103330. doi: 10.1016/j.euroecorev .2019.103330.
DOI: https://doi.org/10.1016/j.euroecorev.2019.103330
View in Google Scholar
Szücs, F. (2018). Research subsidies, industry?university cooperation and innovation. Research Policy, 47(7), 1256?1266. doi:0.1016/j.respol.2018.04.009.
DOI: https://doi.org/10.1016/j.respol.2018.04.009
View in Google Scholar
Van den Besselaar, P. A. A., Flecha, R., & Radauer, A. (2018). Monitoring the impact of EU Framework Programmes. Retrieved from https://op.europa.eu/en/ publication-detail/-/publication/cbb7ce39-d66d-11e8-9424-01aa75ed71a1 (02.02.2020).
View in Google Scholar
Varga, A., & Sebestyén, T. (2017). Does EU Framework Program participation affect regional innovation? The differentiating role of economic development. International Regional Science Review, 40(4), 405?439. doi: 10.1177/01 60017616642821.
DOI: https://doi.org/10.1177/0160017616642821
View in Google Scholar
Web of Science (2019). Database. Retrieved from https://clarivate.com/webof sciencegroup/ (04.12.2019).
View in Google Scholar
Weresa, M. A. (2018). Innovation Union initiative?an overview. In M. A. Weresa (Ed.). Strengthening the knowledge base for innovation in the European Union. Warsaw: PWN, 15?30.
View in Google Scholar
World Bank (2019). World development indicators. Retrieved from https://databank.worldbank.org/source/world-development-indicators (05.12.2019).
View in Google Scholar
World Intellectual Property Organisation (WIPO, 2020). Retrieved from https://www.wipo.int/publications/en/details.jsp?id=4464 (16.01.2020).
View in Google Scholar
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2021 Equilibrium. Quarterly Journal of Economics and Economic Policy
This work is licensed under a Creative Commons Attribution 4.0 International License.
