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Profile / Research Focus

Building on decades of research on innovation in firms, as well as the related topics of firm growth and enterprise/industrial policy and policy evaluation, the ‘Economics of Innovation and Policy’ research group in the Kemmy Business School (KBS), ������ (UL), was founded in 2018. 

Our research has been published in high-impact, internationally leading peer-reviewed journals, including Research Policy, Ecological Economics, Small Business Economics, Regional Studies, Industry and Innovation, The Journal of Technology Transfer, Empirical Economics, Economics of Innovation and New Technology and Regional Science and Urban Economics, amongst many others.

The prime focus of the cluster is to conduct leading-edge research on the role of public policy in driving Research and Development (R&D) and innovation in firms. Moreover, the cluster examines the impact of policy-driven R&D and innovation on firm performance outcomes, such as exports, value added, and employment growth. These firm-level outcomes can result in important economic and societal impacts. Building on over 20 years of impactful research, focused on firm growth and enterprise/industrial policy and policy evaluation, the cluster responds to the acute need for robust evidence on the precise impacts of public policy interventions at firm and regional levels, involving public funding being allocated to private firms. The research cluster also focuses on innovation processes in the arts and sciences. This strand of research uses biographical and bibliometric data, to examine barriers in the international dissemination of research ideas, and collaboration patterns in economic research.

The cluster benefits from a wide international network of collaborators, based at world-leading centres of excellence in the economics of innovation and policy. For example, the cluster regularly collaborates with international academic colleagues at institutions such as ZEW (Germany), the Catholic University of the Sacred Heart (Italy), Warwick Business School (UK), the Enterprise Research Centre (UK), Queen’s University Belfast (Northern Ireland) and KU Leuven (Belgium); as well as closer to home, colleagues at institutions such as Trinity and UCC. In addition, the group engages extensively with policymakers and officials from Ireland (e.g. the Department of Enterprise, Trade and Employment; Research Ireland/Taighde Éireann; Enterprise Ireland; IDA Ireland).  Internationally, our research has been cited in key reports from international organisations.  Illustrative examples include the OECD, The World Bank, the Swedish Agency for Growth Policy, UK Enterprise Research Centre, European Parliament and the European Commission.

In terms of research funding, the group also builds on over two decades of experience in generating significant research funding from academic sources, such as Research Ireland/Taighde Éireann, the European Union’s 7th Framework Programme, the Irish Research Council, and the Royal Irish Academy; as well as policymaking sources, such as Science Foundation Ireland and Enterprise Ireland.

GROUP MEMBERS 

•  (KBS faculty member)
•  (KBS faculty member)
•  (KBS faculty member)
• Gráinne Gibson (PhD student and Irish Research Council (IRC) / Taighde Éireann 2024 Environmental Protection Agency Postgraduate Scholarship recipient).
• (Visiting PhD student from the Catholic University of the Sacred Heart, Department of Economic Policy, Milan)

PUBLICATIONS

Selected publications (over last 10 years)

For full details on the publications of individual members, please click on their individual webpages above.

• Ipinnaiye, O., Lenihan, H., Mulligan, K., Doran, J., and Roper, S. (2025) ‘Innovation success in small and larger firms: Does persistence and diversity in R&D matter when building a unique knowledge base? The Journal of Technology Transfer, DOI: 
• Perez-Alaniz, M., Lenihan, H., Doran, J., and Rammer, C. (2025) ‘Subsidising innovation outside or within firms’ existing knowledge bases: which is best for radical innovation?’, Economics of Innovation and New Technology, DOI: 
• Kuld, L., Mitchell, S., and Hellmanzik, C. (2025) ‘Manhattan Transfer: Heterogeneous productivity effects of agglomeration in American authorship’ Regional Science and Urban Economics (111), March 2025, 104061
• D’Alessandro, F., Santarelli, E., and Vivarelli, M. (2025). The Knowledge Spillover Theory of Entrepreneurship and Innovation (KSTE+I) Approach and the Advent of AI Technologies: Evidence from European Regions, The Journal of Technology Transfer (in press), DOI:
• Lenihan, H., Mulligan, K., Perez-Alaniz, M. and Rammer, C. (2024) ‘R&D policy instrument mix sequencing: Evaluating the impact of receiving R&D grants and R&D tax credits over time on firm-level R&D’, Industry and Innovation 1–34, DOI: .
• Lenihan, H., Mulligan, K., Doran, J. Rammer, C. and Ipinnaiye, O. (2024) ‘R&D grants and R&D tax credits to foreign-owned subsidiaries: Does supporting multinational enterprises’ R&D pay off in terms of firm performance improvements for the host economy?’, The Journal of Technology Transfer 49 (2), pp. 740-781, DOI: 
• Perez-Alaniz, M., Lenihan, H., Doran, J., and Roper, S. (2024) ‘Two birds with one stone: can public financial support help firms to address financial and non-financial obstacles to research and innovation?’, Industry and Innovation, 1–38, DOI:  
• Lenihan H, Perez-Alaniz, M. and Rammer, C. (2024) ‘Climate action response plans in firms: Understanding the characteristics of firms planning for a more sustainable future’,  ZEW - Leibniz Centre for European Economic Research Discussion Paper No. 2 4-0 6, Mannheim, Germany, DOI: .
• Perez-Alaniz, M. Lenihan, H., Doran, J. and Rammer, C. (2024) ‘Subsidising Innovation Outside or Within Firms’ Existing Knowledge Base: Which Is Best for Radical Innovation?’, ZEW - Centre for European Economic Research Discussion Paper No. 24-007, DOI: .
• Lenihan, H., Mulligan, K.,Perez-Alaniz, M. and Rammer, C. (2023) ‘Serving the Right Menu of R&D Policy Instruments to Firms: An Analysis of Policy Mix Sequencing’, ZEW - Centre for European Economic Research Discussion Paper No. 23-009, DOI: .
• Perez-Alaniz, M., Lenihan, H., Doran, J., and Hewitt-Dundas, N. (2023) ‘Financial resources for research and innovation in small and larger firms: Is it a case of the more you have, the more you do?’, Industry and Innovation 30(2), pp. 189-232,  DOI: .
• Kuld, L. and Mitchell, S. (2023) ‘Market structure and creative cluster formation: the origins of urban clusters in German literature, 1700–1932’, European Review of Economic History, head003, DOI: .
• Lenihan, H., Mulligan, K., Doran, J., Rammer, C., and  Ipinnaiye, O. (2022). R&D Grant and Tax Credit Support for Foreign-Owned Subsidiaries: Does It Pay Off? ZEW Discussion Paper No. 22-003, Mannheim (available at: ).
• Mulligan, K., Lenihan, H., Doran, J., and Roper, S. (2022). Harnessing the science base: Results from a national programme using publicly-funded research centres to reshape firms’ R&D. Research Policy, 51(4), 104468, DOI: .
• Garrido-Prada, P., Lenihan, H., Doran, J., Rammer, C., and Perez-Alaniz, M. (2021). Driving the circular economy through public environmental and energy R&D: Evidence from SMEs in the European Union. Ecological Economics, 182, 106884 , DOI: .
• Hellmanzik, C. and Kuld, L. (2021). No place like home: geography and culture in the dissemination of economic research articles, Empirical Economics, 61(1), 201-229 , DOI: .
• Lenihan, H., Mulligan, K., and O'Driscoll, J. (2020) A cross-country repository of details on the innovation and science policy instruments available to firms in eight countries (2007-2020): The devil is in the detail. Kemmy Business School, ������, Ireland, September 2020 (available at: ).
• Lenihan, H., McGuirk, H., and Murphy, K. R. (2019). Driving innovation: Public policy and human capital. Research Policy, 48(9), 103791, DOI: .
• Mulligan, K., Lenihan, H., and Doran, J. (2019). More subsidies, more innovation? Evaluating whether a mix of subsidies from regional, national and EU sources crowds out firm-level innovation. Regional Studies, Regional Science, 6(1), 130-138, DOI: .
• Doyle, E., McGovern, D., McCarthy, S., and Perez-Alaniz, M. (2019). Compliance-innovation: A quality-based route to sustainability. Journal of Cleaner Production, 210, 266-275 , DOI: .
• Kuld, L., and  O’Hagan, J. (2018). Rise of multi-authored papers in economics: Demise of the ‘lone star’ and why?. Scientometrics, 114, 1207–1225 , DOI: .
• Haapanen, M., Lenihan, H., and Tokila, A. (2017). Innovation expectations and patenting in private and public R&D projects. Growth and Change, 48(4), 744-768, DOI: .
• Ipinnaiye, O., Dineen, D., and Lenihan, H. (2017). Drivers of SME performance: a holistic and multivariate approach. Small Business Economics, 48(4), 883-911, DOI: .
• Martinez-Covarrubias, J. L., Lenihan, H., and Hart, M. (2017). Public support for business innovation in Mexico: a cross-sectional analysis. Regional Studies, 51(12), 1786-1800 , DOI: .
• McGuirk, H., Lenihan, H., and Hart, M. (2015). Measuring the impact of innovative human capital on small firms’ propensity to innovate. Research Policy, 44(4), 965-976, DOI: .
• Bailey, D., and Lenihan, H. (2015). A critical reflection on Irish industrial policy: a strategic choice approach. International Journal of the Economics of Business, 22(1), 47-71, DOI: .
• Haapanen, M., Lenihan, H., and Mariani, M. (2014). Government policy failure in public support for research and development. Policy Studies, 35(6), 557-575, DOI: .

RELATED PROJECTS

A recent related funded project (Funding period 2018-2024)

Project title: ‘Evaluating the impact of innovation and science policy on the economy and society: A national evaluation and international benchmarking of innovation and science policy in Ireland’

In 2018, Professor Helena Lenihan was awarded major research grant funding, under Science Foundation Ireland’s Science Policy Research Programme. Under this grant, Professor Lenihan was the Principal Investigator (PI). For most of the duration of the project, Dr. Kevin Mulligan was a Postdoctoral researcher (now at Queen’s University Belfast) and Dr. Mauricio Perez-Alaniz was a PhD student (now an Assistant Prof in Economics at KBS). Other Postdoctoral researchers and Research Assistants have been involved at various stages of the project.  The project examined the impact of public R&D funding on firm-level R&D, innovation, and firm performance outcomes. The project was multifaceted, focusing on many key parts of the Irish and international innovation systems. For example, one part of the project examined the impact of a key individual policy intervention, the establishment of the SFI research centres programme and its impact on firm-level R&D; while other parts of the project focused on the impact of R&D grants and R&D tax credits on foreign-owned subsidiaries’ R&D and firm performance outcomes. Furthermore, the project examined the role of non-financial constraints in firms’ innovation processes, as well as the impact of public R&D support on firms’ eco-innovation outcomes, both in Ireland and internationally.  Additionally, the project focused on the interlinkages between R&D, innovation, and firm-level climate action activities, including the development of Climate Action Response Plans and Circular Economy activities. A further published paper from the project concerned itself with whether persistent and diversity in R&D matter for firms’ innovation success and their building of a unique knowledge base.  The project was largely quantitative in nature, employing state-of-the-art econometrics. To date, this project has led to several academic publications in high-impact, internationally leading academic journals (with others in progress). Research from this project has received significant media coverage. Illustrative examples of research from this project featuring in online media include the following:

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/news-centre/news/ul-led-study-finds-ambitious-sfi-research-centres-programme-increased-industry

Some examples of policy engagement and impact

Group members regularly engage with and advise Government Policymakers.  Some illustrative examples are provided below: 

In 2021 to present: Professor Helena Lenihan was invited to Chair the Steering Committee for a joint research programme between the Department of Enterprise, Trade and Employment (DETE), and the Economic and Social Research Institute (ESRI).  The research programme is concerned with Productivity Challenges with a focus on: climate; digitalisation; human capital; policy impact & data and; productivity dynamics & twin transition. The committee comprises representatives from DETE, the ESRI and the Chair of Ireland’s National Competitiveness and Productivity Council.

In addition to the above recent examples, this research group builds on over 20 years of quality academic work, which has significantly impacted the policy landscape in both Ireland and internationally.  

There are numerous examples to cite in this regard, but some illustrative examples include:

Research from group members being cited in reports from the Department of Enterprise, Trade and Employment (formerly DBEI/DJEI), and the Department of Public Expenditure and Reform in 2018, 2017, 2015, 2011, 2003; and in reports from the European Commission in 2023. Additionally, research from the group has been cited by the European Parliament (2025), World Bank (2020, 2021, 2022, 2023, 2025), International Labour Organization (2021), Canada Innovation, Science and Economic Development Canada (2020), Irish Environmental Protection Agency (2023), IZA Institute of Labor Economics,  and United Nations (2023). 

Members of the research group contributed to a Public Consultation on the Enterprise Policy White Paper available at: /media/29828/download?inline.  This document highlighted eight points with a view to providing an evidence base regarding the future direction of Enterprise Policy in Ireland, based on the insights of the research emanating from this research group.

Being invited by the UK Enterprise Research Centre and the Department for Business, Energy & Industrial Strategy (BEIS), UK, to write State of the Art (SOTA) Reviews (2018 and 2022).  Both reviews below were designed to provide a summary of the evidence base and key pieces of academic research on the Policy Mix for Innovation. The SOTA reviews are available as follows:

• Lenihan, H. and Mulligan, K. (2022) “Policy instruments and private R&D investment”, State of the Art (SOTA) Review, Enterprise Research Centre, UK, SOTA Review No. 54, September (written by invitation, available at: ).
• Lenihan, H. and Mulligan, K. (2018) “The role of policy mix in driving business innovation”, State of the Art (SOTA) Review, Enterprise Research Centre, UK, SOTA Review No. 10, November written by invitation, available at: 

Being invited by Science Foundation Ireland (SFI) to produce a Policy Brief (targeted at key policymakers and stakeholders), to summarise the empirical findings and implications for policy of our research publication on “Financial Resources for research and innovation in small and larger firms: Is it a case of the more you have, the more you do?”, May 2022.(available at: /media/25922/download?inline , and full paper available at: ).

Research from group members published in 1999, 2004, 2005, 2008 and 2011 on enterprise/industrial policy evaluation, was cited in the 2018 report on ‘Industrial Policy: Rationale, Evaluation and Prospects’, to the Swedish Agency for Growth Policy Analysis.

Research from group published in 2021 was cited by The Council of Canadian Academies (ACA) ‘Turning Point’ report (2021and by a 2023 World Bank’s report titled ‘Squaring the Circle: Policies from Europe’s Circular Economy Transition’.

Interested in doing a PhD with our research group?

A large cohort of PhD students have been supervised to completion during and preceding the establishment of the ‘Economics of Innovation and Policy’ research cluster. For any queries on doing a PhD on the economics of innovation and policy (or any related area) with any members of our research group, please contact Professor Helena Lenihan (Helena.Lenihan@ul.ie).