Abstract
This paper explores the effects of R&D promotion policy on SME performance. We use a large panel data set on public R&D subsidies to Korean manufacturing firms. We control for counterfactual outcomes employing the DID (difference in differences) estimation procedure as well as for the endogeneity of the R&D investment and the R&D subsidy using the 2-stage Tobit/Logit DPD (dynamic panel data) procedure. We find significant evidence for positive effects of the public R&D subsidy on both the R&D expenditure and the value added productivity of Korean manufacturing SMEs. The policy thus appears to have been successful in fostering technological advancement and in promoting economic growth.
Original language | English |
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Pages (from-to) | 1-16 |
Number of pages | 16 |
Journal | Small Business Economics |
DOIs | |
Publication status | Accepted/In press - 2016 Jul 26 |
Keywords
- Productivity
- R&D
- Research subsidy
- SMEs
ASJC Scopus subject areas
- Economics and Econometrics
- General Business,Management and Accounting