Joint R&D Subsidies, Related Variety, and Regional Innovation

Tom Broekel*, Matthias Brachert, Matthias Duschl, Thomas Brenner

*Corresponding author for this work

Research output: Contribution to journalArticleAcademicpeer-review


Subsidies for research and development (R&D) are an important tool of public R&D policy, which motivates extensive scientific analyses and evaluations. This article adds to this literature by arguing that the effects of R&D subsidies go beyond the extension of organizations’ monetary resources invested into R&D. It is argued that collaboration induced by subsidized joint R&D projects yield significant effects that are missed in traditional analyses. An empirical study on the level of German labor market regions substantiates this claim, showing that collaborative R&D subsidies impact regions’ innovation growth when providing access to related variety and embedding regions into central positions in cross-regional knowledge networks.

Original languageEnglish
Pages (from-to)297-326
Number of pages30
JournalInternational Regional Science Review
Issue number3
Publication statusPublished - 1 May 2017


  • collaborative R&D projects
  • regional innovation
  • related variety


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