The impact of public R&D subsidy on small firm productivity: evidence from Korean SMEs

Beom Cheol Cin, Young Jun Kim, Nicholas S. Vonortas

Research output: Contribution to journalArticle

19 Citations (Scopus)

Abstract

This paper explores the effects of R&D promotion policy on SME performance. We use a large panel data set on public R&D subsidies to Korean manufacturing firms. We control for counterfactual outcomes employing the DID (difference in differences) estimation procedure as well as for the endogeneity of the R&D investment and the R&D subsidy using the 2-stage Tobit/Logit DPD (dynamic panel data) procedure. We find significant evidence for positive effects of the public R&D subsidy on both the R&D expenditure and the value added productivity of Korean manufacturing SMEs. The policy thus appears to have been successful in fostering technological advancement and in promoting economic growth.

Original languageEnglish
Pages (from-to)1-16
Number of pages16
JournalSmall Business Economics
DOIs
Publication statusAccepted/In press - 2016 Jul 26

Keywords

  • Productivity
  • R&D
  • Research subsidy
  • SMEs

ASJC Scopus subject areas

  • Economics and Econometrics
  • Business, Management and Accounting(all)

Fingerprint Dive into the research topics of 'The impact of public R&D subsidy on small firm productivity: evidence from Korean SMEs'. Together they form a unique fingerprint.

  • Cite this