Structure and dynamics of policy induced networks in systems of innovation

The granting of publicly subsidized joint projects has become a popular policy instrument in both Germany and the European Union. However, little is known about how the emerging subsidized network affects the allocation process of future project grants. Employing unique databases containing information about government funded R&D projects , this book analyzes the extent to which the funding network becomes shaped by a self-enforced project allocation mechanism . The empirical results show that participation within a collaborative project does not raise, per se, the chance of an organization obtaining another project grant. Rather, it is important to hold central positions within the network in order to increase the likelihood of receiving new subsidies.