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<p>The paper examines the relationship between different sources of funding for research and development at universities. Following the European Commission methodology, we distinguished between government, business and abroad financing of research and development (R&amp;D) in the higher education sector. The paper aims to test short-run and long-run relationships between different funding sources. We are focused on the relationship between government and business funding of R&amp;D at universities. Based on panel data for EU countries, we applied the Granger causality tests and General methods of moments to examine short-run causality and cointegrating regression to search for potential long-run relationships. Our results suggest that government funding of R&amp;D act as a complement to business funding. Hence, rising government financial support for research in higher education can, lead to higher funding from the business sector. Founding from abroad seems to have a similar effect on business funding in the long run.</p>
</abstract>

The paper examines the relationship between different sources of funding for research and development at universities. Following the European Commission methodology, we distinguished between government, business and abroad financing of research and development (R&D) in the higher education sector. The paper aims to test short-run and long-run relationships between different funding sources. We are focused on the relationship between government and business funding of R&D at universities. Based on panel data for EU countries, we applied the Granger causality tests and General methods of moments to examine short-run causality and cointegrating regression to search for potential long-run relationships. Our results suggest that government funding of R&D act as a complement to business funding. Hence, rising government financial support for research in higher education can, lead to higher funding from the business sector. Founding from abroad seems to have a similar effect on business funding in the long run.

Government and Business Funding of Sources of Funds for R&amp;D at Universities: Complements or Substitutes?

PhD, Associate Professor, University of Zagreb

South East European Journal of Economics and Business

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.

Government and Business Funding of Sources of Funds for R&D at Universities: Complements or Substitutes?

The paper examines the relationship between different sources of funding for research and development at universities. Following the European Commission...

Government and Business Funding of Sources of Funds for R&D at Universities: Complements or Substitutes?

Published Online: Dec 10, 2023

Page range: 97 - 111

DOI: https://doi.org/10.2478/jeb-2023-0021

Keywords
research and development, funding, higher education, university, Europe

© 2023 Ján Huňady et al., published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.

Government and Business Funding of Sources of Funds for R&D at Universities: Complements or Substitutes?

Published Online: Dec 10, 2023

Page range: 97 - 111

DOI: https://doi.org/10.2478/jeb-2023-0021

Keywordsresearch and development, funding, higher education, university, Europe

© 2023 Ján Huňady et al., published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.

Keywords
research and development, funding, higher education, university, Europe