Fostering industry-science cooperation through public funding: differences between universities and public research centres

This paper analyses behavioural additionality of subsidies by regional and EU framework programme public funding granted to business enterprises in terms of the ‘instalment’ of research cooperation between industry and science. Acknowledging their specificities in terms of research orientation, research scale, and management of research, the science component is divided in universities and public research centres. Drawing on firm level data provided by the OECD bi-annual business R&D surveys of 2004 and 2006 for Belgium, the main result is that funding by regional governments fosters the instalment of industry-science research cooperation. However, this positive effect is limited to the case of cooperation with public research centres (and not with universities). The prerequisite of commercialisation of research in the case of funding by regional governments could explain this. Public funding provided by the EU framework programme did not exert an impact on the instalment of industry-science cooperation, neither with universities nor with public research centres. This could be due the fact that EU funding is targeted at firms that are already cooperating and does not favour the set-up of new cooperation. Copyright Springer Science+Business Media, LLC 2012