The formation of Coasean institutions to provide university knowledge for innovation: a case study and econometric evidence for Switzerland
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Date
2021-10
Publication Type
Journal Article
ETH Bibliography
yes
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Abstract
“Coasean” institutions are an alternative institutional form that provides a solution to some market and coordination failures. As such they can weaken considerably the case for public subsidies in a vast range of context. They are “market-based” and an inexpensive way to address the public good issues of R&D. They are, however, a largely overlooked institutional option. Early theoretical notions emphasize the advantages of such an institutional setting, however, broader empirical evidence about their effectiveness is lacking. We apply two different empirical approaches to assess the relationship between “Coasean” institutions and the innovation performance of SMEs. In a case study, we investigate Inspire AG, a successful bottom-up, institutional invention in the spirit of a “Coasean” institution. To assess the general validity of this model, we use representative firm-level data to econometrically investigate the relationship between “Coasean” institutions and the sales share of innovative products. “Coasean” institutions are positively related with innovative sales only if the company has a sufficiently large absorptive capacity for external knowledge. This positive moderating effect of “Coasean” institutions for the innovation performance is larger for SMEs. Our empirical findings provide a strong case for policies aimed at encouraging the operation of this type of institution.
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Publication status
published
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Book title
Journal / series
Volume
46 (5)
Pages / Article No.
1584 - 1610
Publisher
Springer
Event
Edition / version
Methods
Software
Geographic location
Date collected
Date created
Subject
R&D collaboration; Coasean institutions; Case study; Firm-level panel data; Innovation performance
Organisational unit
02525 - KOF Konjunkturforschungsstelle / KOF Swiss Economic Institute