The Short-run Impact on Total Factor Productivity Growth of the Danish Innovation and Research Support System

The report show the results from the first joint estimation of the economic impact of innovation and research support programs in Denmark. To avoid contaminated estimates, we control for other program participation before, simultaneously or after the observed participation in question. We find that firms establishing contact with the support system, subsequently, on average, grow 2.5 percentage points faster annually the first two years, compared to nonparticipating firms. Behind this average estimate lies highly varying estimates for the individual programs. Estimates range from no effect to as high as 4.6 percentage points added growth.

The Danish Agency for Science, Technology and Innovation has initiated a comprehensive impact study of participation in the Danish system of innovation and research programs.

The study is carried out by Centre for Economic and Business Research (CEBR).