More Innovation through Clusters of Excellence
ResearchZEW Study on Strengthening Innovation in Germany
How can Germany’s competitive position in the international landscape of science and technology be strengthened? The concentrated promotion of research clusters could be a good starting point. A recently published ZEW study shows that companies are more innovative if there are at least four university clusters of excellence being funded in their region. However, a lower amount of nearby funded Clusters of Excellence does not seem to have a measurable effect on a company’s innovativeness.
These results emphasise the important role of sufficient funding for regional promotion of innovation. Despite numerous clusters being funded since 2006, their effect has only been discernible in isolated cases due to their broad distribution across Germany.
“In order to take a leading position in the global science and technology landscape, Germany must step up its efforts. Concentrated funding of Clusters of Excellence is an effective way to enhance the regional innovation impact of German universities,” explains ZEW economist Dr. Bastian Krieger, head of the ZEW Junior Research Group “Co-Creation”. “The current volume of excellence funding is not enough to place Germany in a top position. To achieve this goal, funds must be significantly scaled up and strategically pooled.”
Need for enhanced funding
Despite programmes such as the Excellence Initiative and the Excellence Strategy, Germany lags behind leading nations such as the US, the UK and Switzerland in scientific rankings. The study recommends a reorientation of funding to maximise the impact of Clusters of Excellence. This includes increasing the funding volume and strategically concentrating funds in selected regions.
Background and data basis
The study analysed extensive data on the funding of Clusters of Excellence and their impact on innovation in Germany, based on the Mannheim Innovation Panel (MIP). Using advanced econometric methods, the study examined more than 26,000 companies from 2000 to 2016 in order to determine the impact of the Excellence Initiative’s funding lines “Clusters of Excellence”, “Graduate Schools” and “Future Concepts” on the innovative strength of regional companies. Bastian Krieger’s study was supported by the INNcentive programme of the Stifterverband and the Pierre Werner Scholarship of the Fondation de Luxembourg.
