Evaluating the effectiveness of public support on inbound open innovation

Abstract

Applying several matching estimators to a sample of Spanish manufacturing SMEs, we evaluate the impact of regional and federal funding on inbound open innovation strategies. Such SMEs are more likely to respond to public support by increasing either their cooperation with government institutions or their investment in extramural R&D than by enhancing cooperative networks. A policy corollary is to promote measures to attenuate cooperation failures. Methodologically, each type of funding and each type of cooperative partner should be considered separately. Moreover, overestimation of treatment effects when firms' unobserved characteristics are not addressed suggests that sensitivity analysis should complement matching estimation.

Output additionality of R&D subsidy on manufacturing venture firms in Korea

“…Czarnitzki and Delanote (2015) evaluated the EU policy on independent young SMEs in high tech sectors and found that current policy focus is not ineffective. Positive effects of R&D subsidies were also found by Douglas et al, 2016 who analyzed the treatment effect on a wide range of innovation output in European SMEs. They found positive effects of the innovation support program, typically increasing the probability of innovation and its commercial success by around 15 percent.…”

“…The implication of these findings is that R&D subsidy for venture firms does not relieve the burden of liability of newness and smallness of venture firms, especially the disadvantage in market penetration and competition. It suggests, thus, that further policy measures are implemented so as to identify and eliminate barriers to market acceptance for new products of venture firms (Douglas et al, 2016).…”