The aim of this project is to determine the impact of the funding awarded under the Berlin ERDF program during the 2021-2027 funding period. The impact of the previous 2014-2020 funding period will also be included.

ZEW's contribution to the project is to conduct a counterfactual impact analysis of funding awarded to businesses. Conditional difference-in-difference (cDiD) estimations will be used. In the first step, a control group will be formed, comprising companies that did not receive ERDF funding and whose essential characteristics do not differ from those of the ERDF-funded companies ("beneficiaries"). In the second step, the influence of the received business-region funding on various target variables will be determined for both the beneficiary groups and the weighted control group companies using difference-in-difference (DiD) estimations. The following target variables are considered:

• In the funding area of climate and environment: Introduction of environmental innovations, differentiated according to the type of environmental impact and the level of contribution to environmental protection
• In the funding area of innovation and productivity: Innovation expenditure, R&D expenditure, R&D staff, introduction of product and process innovations, revenue from product innovations, productivity (revenue per employee)

The data basis for the impact analysis consists of a survey of grant recipients and the Mannheim Innovation Panel (MIP), which primarily serves to form a control group.