Government RandD funding and company Behaviour : Measuring behavioural Additionality

How does government funding of corporate RandD affect the behaviour of firms? Ongoing efforts to boost business investment in RandD demand better methods of evaluating the effectiveness of government policy instruments. Efforts to measure changes in the ways firms conduct RandD as a result of government policy - so-called "behavioural additionality" effects - have remained relatively underdeveloped. This publication explores the emerging concept of behavioural additionality and summarises results of a multinational effort to develop better ways of measuring it. Evaluations should investigate not only how much additional business RandD spending is stimulated by government support or how much additional output is generated as a result, but also how government funding influences the conduct and direction of business RandD. The analysis derives from a series of studies in Australia, Austria, Belgium, Finland, Germany, Japan, Korea, Norway, the United Kingdom, the United States and the European Union.