Research Policy 38 (2009) 293–305 Contents lists available at ScienceDirect Research Policy journal homepage: www.elsevier.com/locate/respol Funding incentives, collaborative dynamics and scientific productivity: Evidence from the EU framework program Daniela Defazio a,1 , Andy Lockett b,2 , Mike Wright c,d,∗ a Telfer School of Management, University of Ottawa, 55 Laurier Avenue East, Ottawa, ON K1N 6N5, Canada b Nottingham University Business School, University of Nottingham, Jubilee Campus, Nottingham NG8 1BB, United Kingdom c Center for Management Buy-out Research, Nottingham University Business School, University of Nottingham, Jubilee Campus, Nottingham NG8 1BB, United Kingdom d Rotterdam School of Management, Erasmus University Rotterdam, 3000 DR Rotterdam, The Netherlands article info Article history: Received 29 August 2007 Received in revised form 5 November 2008 Accepted 6 November 2008 Available online 31 December 2008 JEL classification: 031 Keywords: Research productivity Collaboration EU-funded networks abstract In this paper we examine how incentives for collaboration shape collaborative behavior and researcher productivity in the context of EU-funded research networks. EU-funded research networks require researchers to collaborate as a condition for securing research funding. The presence of research funding, therefore, may influence collaborative behavior. Our approach involves isolating the effects of funding, collaboration and previous collaborations (prior to funding) on research output, and examining how the pattern of collaboration affects research productivity over time. Employing a panel of 294 researchers in 39 EU research networks over a 15-year period we find that while the impact of funding on productivity is generally positive the overall impact of collaboration within the funded networks is weak. When we delineate between pre-, during- and post-funding periods, however, we find some important differences. During the period of funding, collaboration did not lead to an increase in research production. In the post- funding period we find that although the number of collaborations decreases within the network, the impact of collaboration on productivity is positive and significant. Our findings suggest that collaborations formed to capitalize on funding opportunities, while not effective in enhancing researcher productivity in the short run, may be an important promoter of effective collaborations in the longer run. © 2008 Elsevier B.V. All rights reserved. 1. Introduction The idea that collaboration between researchers is a laudable goal is accepted and promoted by many policymakers. EU science policy, which aims to foster the “overall advancement of knowl- edge” and to create a European Research Area (ERA), is focused on the importance of networks and collaboration as a means to achieve these objectives (Commission of European Communities, 2006). Consequently, EU-funded research networks require researchers to collaborate as a condition for securing research funding. The aim of the funding is to foster both collaboration and to enhance researcher productivity. This policy is based on the assumption that the impact of funding on researcher productivity is expected to derive, at least partially, from the collaboration among partners. ∗ Corresponding author at: Center for Management Buy-out Research, Not- tingham University Business School, University of Nottingham, Jubilee Campus, Nottingham NG8 1BB, United Kingdom. Tel.: +44 115 951 5278. E-mail addresses: defazio@telfer.uottawa.ca (D. Defazio), andy.lockett@nottingham.ac.uk (A. Lockett), mike.wright@nottingham.ac.uk (M. Wright). 1 Tel.: +1 613 562 5800x8832. 2 Tel.: +44 115 951 5268. Existing research has focused on the effects of collaboration and funding, but only as independent determinants of research produc- tivity (De Beaver and Rosen, 1979; Durden and Perri, 1995; Landry et al., 1996; Arora and Gambardella, 1996; Hollis, 2001; Godin, 2003). However, the underlying processes linking funding, collaboration and research productivity are highly complex and are yet to be conceptualized in a coherent and widely accepted framework. Collaboration is viewed as playing an important role in enhanc- ing productivity both through sustaining the process of knowledge creation and as a means to increase the division of tasks and achieve scale economies in research activity (Katz and Martin, 1997; Adams et al., 2005). Existing studies suggest that the effect of collaboration on productivity depends on the characteristics of the relationship, which shape the ability and the motivations to share resources and knowledge among different partners. These studies also high- light that a condition for effective collaboration is balancing the integration of new knowledge with the management of existing relationships (Porac et al., 2004). Therefore, whether the funding opportunity is able to sustain and/or enhance this balance is an important issue for policymakers. Funding is viewed as having a strong positive effect on produc- tivity because it provides access to research resources rather than because of its impact on collaboration (Lee and Bozeman, 2005). 0048-7333/$ – see front matter © 2008 Elsevier B.V. All rights reserved. doi:10.1016/j.respol.2008.11.008