1. Institute for the Promotion of Innovation By Science and Technology in Flanders

2. Instituut voor de Aanmoediging van Innovatie door Wetenschap en Technologie in Vlaanderen BEHAVIOURAL ADDITIONALITY Evaluation Beyond the Linear Innovation Model Research and the Knowledge Based Society – Measuring the Link European Conference on good practices in research evaluation and indicators Galway, May 24 th 2004 Jan Larosse, IWT-Flanders

3. home > sitemap > Behavioural Additionality 3 Behavioural Additionality : Overview 1.Why Behavioural Additionality? 2.R&D Subsidies in 'interactive mode' 3.BA in many dimensions 4.Traditional vs Behavioural Additionality 5.IWT practice: 'internalised' additionality 6.Challenges for evaluation methodoloy

4. home > sitemap > Behavioural Additionality 4 Behavioural Additionality: Why? 1. Need for 'systemic' evaluations - Different nature of knowledge as production factor - Social return= (Private Return + Spillovers)*Additionality -Additionality: role of governments -Behaviour catches interaction effects in innovation system 2. Need for ‘bridging’ concept: -Bridging different traditions of evaluation -Micro-foundation of systemic evaluation - Theory has to catch-up on policy practice

5. 5 home > sitemap > deze pagina is voorbehouden voor grote schema's 5 home > sitemap > 5 Sector Cluster Partner Spillovers Project Design Firms International and local environment R&D Innov. Effect Input Publicity CriteriaMilestones Interaction Output : Projects succeeded Proces Research Infrastructure Intermediaries Framework Conditions Government Others Evaluation Impact Complementairy Impacts Budget Policy Objectives. Application ContractFollow-up INNOVATIONSYSTEMINNOVATIONSYSTEM IWTIWT CLIENTCLIENT

6. 6 home > sitemap > 6 home > sitemap > 6 Project Design Firms R&D Innov. Effect Input Awareness Intake Criteria Milestones INTERACTION Output Projects accomplished Proces Government Budget Policy Objectives ApplicationContractFollow-up IWTIWT CLIENTCLIENT Evaluation Impact

7. home > sitemap > Behavioural Additionality 7 7 home > sitemap > Behavioural Additionality in many dimensions

8. home > sitemap > Behavioural Additionality 8 Traditional Additionality vs Behavioural Additionality 1.Linear model: Input Add. proxy for innovation outcome 2.Behaviour of applicants as 'black box‘ 3.Allocation behaviour as sufficient theoretical foundation) 4.'Optimality' of allocations as reference 1.Non-linear model Interactivity key to innovation performance 2.Behaviour of applicants is focus 3.Different kinds of behaviour (markets, hierarchies, networks) in innovation system 4.‘Real world’ as reference

9. home > sitemap > Behavioural Additionality 9 Traditional Additionality vs Behavioural Additionality 6. Focus on evalution of impact on the firm 7. Evaluation of single instruments 8. Impact assessment is main challenge 9. Problem of counterfactual analysis (finding identical control groups) 6. Shift to evaluation of spillovers to the system 7. Evaluation of complementarity of instruments (leverage) 8. Policy learning is main challenge (improving policy design) 9. Problem of comparative analysis (similar situations, never alike)

10. home > sitemap > Behavioural Additionality 10 Traditional Additionality vs Behavioural Additionality 10. Money transfer is central : Redistributive role of government Additionality versus ‘crowding out’ = negative connotation 10. Interaction is central: Catalyser role of government Additionality as ‘value added’ = positive connotation

11. home > sitemap > Behavioural Additionality 11 home > sitemap > IWT Bottom-up R&D Stimulation Instrument Additionality? TargetObjectiveMotivationIncentiveValue-Add Basic researchMoreUnder- investment (uncertainty) 50% (vs 25%) Portfolio (Programme financing Eureka (Internat Co-op) MoreCoordination cost + 10%EU Contact Point NetworkingMoreCoordination cost + 10%Platforms (Thematic Clusters) SMEMoreBarriers+ 10%Innovation trajectory

12. home > sitemap > Behavioural Additionality 12 home > sitemap > IWT Bottom-up R&D Stimulation Instrument Additionality? TargetObjectiveMotivationIncentiveValue-Add SME Doubling of SME applications Specific needs (Feasibility Studies) Specific costs (80%) Capabilities (Innovation Management) Sustainable Techn.Dev. Share in IWT portfolio above 16% Negative Externalities Priority arrangement + 10% Combination of instruments (consistency in time) Start-upsAccess to capital market (near- capital) Capital market failure Subordinated loans (up to 75%) Support VC Capital (missing link)

13. home > sitemap > Behavioural Additionality 13 Evaluation of Effectiveness with BA : Beyond the Linear Innovation Model 1. Traditional evaluation (linear model) - Innovaton performance = mechanical result (output follows input) - Market failure : government can correct underinvestment by innovating firms - Input additionality (proxy for output additionality) 2. Systemic evaluation (interactive model) - Innovation performance = result of interaction (mutual adaptation) - Systemic failures : government as a co-actor - Behavioural additionality (micro-foundation for systemic evaluation of role government)

14. home > sitemap > Behavioural Additionality 14 Evaluation of Effectiveness with BA : Policy Learning 1.Is Additionality (still) a useful concept? - ‘making the difference’! - learning versus optimality 2.What adaptations are needed to evaluation methodologies? - complexity as a solution? - comparative vs counterfactual method? 3.How to use the evaluation of BA in policy learning - include behaviour of agencies! - policy mix is implied!

15. home > sitemap > Behavioural Additionality 15 Evaluation of Effectiveness with BA : Taking it Further 1. Research Agenda - Conceptual clarification - Measurement as occasion for learning (not only legitimising) - Comparative research as (international) policy learning 2. How to organise learning - Communities of practice of evaluators - Communication with policy makers 3. Integration in broader agenda’s - Oecd-TIP / TAFTIE / EU

16. Bischoffsheimlaan 25 B-1000 Brussels Tel.: +32 (0)2 209 09 00 Fax.: +32 (0)2 223 11 81 E-mail: info@iwt.be www.iwt.be Institute for the Promotion of Innovation By Science and Technology in Flanders