Journal of Evolutionary Economics

, Volume 29, Issue 5, pp 1433–1458 | Cite as

The effects of public research and subsidies on regional structural strength

  • Thomas BrennerEmail author
  • Franziska Pudelko
Regular Article


The paper analyzes the effects of public research (publications) and research and education subsidies on regional structural strength. To this end it takes new approaches in two respects: First, we use a vector auto-regressive (VAR) model to detect reciprocal effects. Second, we introduce a new measure for structural strength based on the regions’ industrial composition. We find that the effects of public research and public subsidies differ depending on the location’s innovativeness. Both scientific activity and public subsidies are found to have positive effects on regional structural strength in less innovative and economically weak regions, but low or even negative effects in economically strong regions.


Structural strength Structural change Public research VAR model Spatial effects 

JEL Classification

C33 R11 R50 



The authors would like to thank two anonymous referees for their helpful comments. This research was funded by the German Federal Ministry of Education and Research (grant number: 01HI16004P).

Supplementary material

191_2019_626_MOESM1_ESM.csv (784 kb)
ESM 1 (CSV 784 kb)


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Copyright information

© Springer-Verlag GmbH Germany, part of Springer Nature 2019

Authors and Affiliations

  1. 1.Philipps-Universität MarburgMarburgGermany

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