Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/173249
Authors: 
Czarnitzki, Dirk
Hünermund, Paul
Moshgbar, Nima
Year of Publication: 
2018
Series/Report no.: 
ZEW Discussion Papers 18-001
Abstract: 
The use of public procurement to promote private innovation activities has attracted increasing attention recently. Germany implemented a legal change in its procurement framework in 2009, which allowed government agencies to specify innovative aspects of procured products as selection criteria in tender calls. We analyze a representative sample of German firms to investigate whether this reform stimulated innovation in the business sector. Across a wide set of specifications - OLS, nearest-neighbor matching, IV regressions and difference-in-differences - we find a robust and significant effect of innovationdirected public procurement on turnover from new products and services. However, our results show that the effect is largely attributable to innovations of more incremental nature rather than market novelties.
Subjects: 
Public Procurement of Innovation
Public Procurement with Contracted Innovation
Technical Change
Research and Development
Econometric Policy Evaluation
JEL: 
H57
O38
Document Type: 
Working Paper
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