Spatial distribution of bioeconomy R&D funding: opportunities for rural and lagging regions?

Abstract

ABSTRACT The promotion of R&D carries the risk that economically strong regions will benefit to a greater extent and that regional disparities will increase by focusing the economy on high technology. However, this is expected to depend on the specific sectoral and technological composition of R&D funding. R&D funding for a bio-based economy in Germany is particularly illustrative for a shift in funding focus from a narrow concept of biotechnology to a broader concept of bioeconomy. Along with this shift, an impact on the spatial distribution of R&D funding is assumed. Against the background of inclusive innovation policy, this study examines the potential of the bioeconomy for a reduction of regional disparities in public R&D funding. Based on a database containing publicly-funded R&D projects in Germany and further regional data, comparative regressions are conducted in order to identify spatial patterns. The results demonstrate distinct funding mechanisms in the different areas of the bioeconomy. The broadening of R&D funding for bio-based activities from the biotechnology vision towards bioresources and bioecology leads to a greater participation of rural and lagging regions which is expected to be the result of the inclusion of more traditional industries as recipients of R&D funding.