Technological impact of R&D grants on utility models

Abstract

We evaluate the impact of public grants on the technological output of Spanish manufacturing companies using the utility models as a measure and compare them with patents. We postulate that capabilities of the firm play a decisive moderating role in the relationship between grants and utility models. Results suggest that a firm's capability to constantly maintain an updated knowledge base has a positive influence on the abovementioned relationship. Also, firm's capabilities of planning innovation, and cooperating with partners, and its absorptive capacity are crucial in the creation of both utility models and patents.

Product–service innovation and performance: the role of collaborative partnerships and R&D intensity

“…I n industries with fast-changing technologies, strategic alliances are primary in product innovation (Visnjic et al, 2016), value creation and competitive advantage (Gomes et al, 2011;Torres-Barreto et al, 2016). Collaborative product innovation strategies and R&D cross-fertilisation (Faems et al, 2005;Cloodt et al, 2006;Colombo and Rabbiosi, 2014) enable firms to modify or develop new products to meet continuously changing customer needs and preferences (Utterback and Abernathy, 1975;Krzeminska and Eckert, 2016).…”

Key Performance Indicators for Utility Model Systems

“…Beneito (2006) [34]) analysed how patents and UMs are associated with internal and external R&D. She assumed that patents and UMs approximate significant and incremental innovations, respectively, and found using panel data of Spanish manufacturing firms that significant innovations (patents) are mainly developed in-house, whereas contracted R&D is more orientated towards incremental innovations (UMs). Torres-Barreto et al (2016) [35] analysed the association between R&D grants and UMs in Spain and reported that regional and national R&D grants do not have a significant direct effect on obtaining UMs. Based on Korean firm-level data, Kim et al (2012) [22] reported that UM innovations contribute to firm growth and innovation when firms are technologically lagging, but they contribute insignificantly when firms are technologically more advanced.…”