Given the growing importance of climate technology and its early stage of industrial development, the Korean government has supported climate-tech small- and medium-sized enterprises (SMEs) through various policy measures, including credit guarantees. Although the extant literature argues that government financial support plays an important role in the growth of high-tech firms, research has been limited on the impacts of government financial support on company growth in the context of the climate-related industry. Using a sample of 582 climate-tech SMEs in Korea, this study explores the moderating effects of credit guarantees on the relationship between patents and firms’ sales growth as well as their direct effects on growth. This study found that credit guarantees and patent registration have positive effects on the increase in sales volume. Additionally, credit guarantees appear to weaken the relationship between patent registration and the sales growth rate. Based on these findings, we propose that, to develop the climate-technology industry, the voluntary innovation efforts of enterprises should be encouraged and credit guarantees should be provided for SMEs. In terms of managerial interventions, the government should especially avoid providing excessive benefits.

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A major barrier to the spread and vitalization of renewable energy lies in its economic infeasibility. And yet, there is a disparity in estimating the economic feasibility between supply and demand sides. Taking this into account, we calculate an appropriate level of mini-solar panel subsidies provided by the Seoul metropolitan government. More pointedly, this research investigates the receptivity and social equity of the subsidy program based on the analysis of the program's financial feasibility. The results show that the subsidies can have anticipated effects for

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