“…Receiving an innovation subsidy can provide SMEs with the financial resources to allow their employees to invest more time in innovation (George, 2005). Confirming a positive influence of innovation subsidies on employee involvement would provide policy makers with a new rationale for subsidy programs, because employee involvement has positive effects on organizational change, performance, and employee satisfaction (Caves and Porter, 1977;Denison, 1984;Mendes, 2012;Porter, 1979;Pun and Chin, 1999;Sun et al, 2000;Welikala and Sohal, 2008;Wilkinson, 1998). Following this line of reasoning, I dedicate Chapter 2 to testing for a relationship between receiving an innovation subsidy and employee involvement.…”