R&D Subsidies and Diversification in New Industries and Technologies in Swedish Regions

March 3, 2020

This project takes up the question: is there any evidence that R&D grants might induce regional diversification?

Researchers examined whether VINNOVA research and innovation programs implemented in the period 2010-2012 correlate with the development of new industries and technologies in Swedish regions in the years after. They analyzed whether Swedish regions that receive more R&D funding in a specific industry or technology are also more likely to diversify in this industry and technology.

Researchers also examined whether this relationship is stronger for collaborative R&D projects, as compared to non-collaborative R&D projects.

Finally, researchers investigated whether R&D grants may still be able to stimulate regional diversification when relevant local capabilities are missing in the region. To what extent can R&D grants compensate for missing local capabilities and contribute to (unrelated) diversification in a region? Or are local capabilities more likely to strengthen the relationship between R&D grants and regional diversification, and thus enhance the possible effect of R&D grants in the region?