Tax incentives… or subsidies for business R&amp;D?

Busom, Isabel; Corchuelo, Beatriz; Martínez‐Ros, Ester

doi:10.1007/s11187-014-9569-1

Cited by 147 publications

(99 citation statements)

References 29 publications

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“…This is consistent with Lerner's (2002) claim that government certification can address information asymmetry in capital markets [29]. Since the late 1990s, the Korean government has implemented venture certification policies and InnoBiz certification policies, as governments have developed diverse support policies for SMEs, such as credit guarantees [48] and tax incentives [49], because government policy is an important factor in driving technological change [50].…”

Section: Utilizing Outsourcing Strategy and Firm Performancesupporting

confidence: 64%

How an Open Innovation Strategy for Commercialization Affects the Firm Performance of Korean Healthcare IT SMEs

Kim

2018

Sustainability

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Small and medium-size enterprises (SMEs) in the healthcare IT industry must have innovative technology and, at the same time, be able to commercialize this technology in order to have sustainable growth, as enterprises in any other industry do. However, due to the lack of resources of SMEs, many studies focus on effective and innovative strategies based on a resource-based view. To be more effective, some SMEs collaborate with other companies in the manufacturing process, not as a closed, but rather as an open innovation. However, this collaboration is difficult and bears risks. Additionally, as an external factor, the government certification system attempts to help SMEs. Therefore, in this study, we performed a multiple regression analysis centered on firms' resources and strategies. Three results were obtained. First, in terms of the firms' resources, the higher the quality of patents that measure firm capacity, the higher the firm performance. Second, regarding the firms' strategies, cooperation with external companies in the manufacturing process has a positive effect on firm performance. Third, receiving government certification (InnoBiz certification), as a form of cooperation with the government, has a negative impact on firm performance. In other words, the present government policy to support the R&D of SMEs needs to be adjusted. SMEs can develop high-quality patents, and strategies for cooperation with external companies can enhance the innovation performance of enterprises.

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Section: Utilizing Outsourcing Strategy and Firm Performancesupporting

confidence: 64%

How an Open Innovation Strategy for Commercialization Affects the Firm Performance of Korean Healthcare IT SMEs

Kim

2018

Sustainability

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“…Kobayashi (2014) finds that R&D tax credits induce an increase in Japanese SMEs' R&D expenditures and the effect is larger for liquidityconstrained firms. However, Cowling (2016) and Busom et al (2014Busom et al ( , 2016 do not think that tax credits significantly affect SME's R&D in the UK and Spain, respectively. Relative to subsidies, tax credits eliminate potential government preference with respect to industry and the type of the firm.…”

Section: Subsidies and Innovationmentioning

confidence: 95%

Subsidies, financial constraints and firm innovative activities in emerging economies

Mateut

2017

Small Bus Econ

108

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This paper investigates the relationship between public subsidies and firm innovation in transition and developing economies, which are likely to have less developed financial markets. Innovation includes the introduction of new products or services and the upgrade of existing ones, which is of particular relevance for these economies. The results obtained using alternative measures of financial constraints and market competition, within a range of econometric techniques, suggesting a positive relation between public subsidies and the innovative activities of 11,998 firms across 30 Eastern Europe and Central Asian countries. This correlation is stronger for firms more likely to be financially constrained.

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“…Ali-Yrkkö (2005) specifically finds a positive effect of public funding on the R&D of small firms, which would be more likely to face financial constraints. Using firm-level data from two waves of the Spanish CIS, Busom et al (2014) also conclude that for SMEs, internal and external financing constraints are positively associated with the likelihood of receiving direct funding.…”

mentioning

confidence: 87%

Subsidies or loans? Evaluating the impact of R&D support programmes

2017

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The objective of this study is to compare the effect of different types of public direct support for R&D projects on firms' technological capabilities. We distinguish between low-interest loans and national and European subsidies. Using data on 4,407 Spanish firms during the period 2002-2005, we estimate a multivariate probit to analyse the determinants of firms' participation in public R&D programmes and, later, the impact of this participation on firms' R&D activities using two different procedures. Regardless of the methodology employed for the analysis, the results suggest that being awarded any type of direct aid clearly increases the probability of conducting R&D activities. In terms of being supported through a unique instrument, the greatest effect corresponds to the case of European grants, where the impact is more than three times larger than the one of loans. As for R&D intensity, the hypothesis of full crowding-out of private R&D is rejected for all types of support. In addition, we find that the impacts of subsidies and loans reinforce each other when they are jointly awarded to SMEs. However, for large firms we cannot rule out the existence of crowding-out effect between subsidies and loans.

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Tax incentives… or subsidies for business R&D?

Cited by 147 publications

References 29 publications

How an Open Innovation Strategy for Commercialization Affects the Firm Performance of Korean Healthcare IT SMEs

How an Open Innovation Strategy for Commercialization Affects the Firm Performance of Korean Healthcare IT SMEs

Subsidies, financial constraints and firm innovative activities in emerging economies

Subsidies or loans? Evaluating the impact of R&D support programmes

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