Doctoral Degrees in the Light of R&D Funding Allocations to Private Firms

Abstract: To address contemporary challenges like climate change, technological innovation becomes ever more important. Innovation is the product of a vast array of interactions between actors in the economy and it is vital to understand the relations between these. This quantitative study examines the interplay between highly skilled human capital and public R&D funding to private sector firms at the regional level in Sweden. The study assesses the number of doctoral degrees awarded across six different research areas and the public R&D funding allocated to private firms by Vinnova, the Swedish innovation agency. The data analysed spans the eight Swedish NUTS2 regions between 2003 to 2021. Whereas the number of doctorates remains relatively constant across regions and years, a general increase in funding is observed. A positive relationship is found between the total number of doctoral degrees issued across all research areas and the amount of funding allocated. Specifically, one additional PhD awarded in any research area corresponds to a 0.218% increase in the amount of funding provided by Vinnova. Results vary considerably when doctoral degrees are split up by research area. A significant relationship is found for additional doctorates in medicine and health sciences, social sciences, and technical sciences. Significance varies depending on the statistical model. Overall, mixed results across different research areas point towards the importance of region-specific characteristics in the allocation of public R&D funds by Vinnova in Sweden.