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Evaluation of the Small Business Innovation Research Program in Japan

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  • Hiroyasu Inoue
  • Eiichi Yamaguchi

Abstract

The Small Business Innovation Research (SBIR) program conducted by the Japanese government is intended to enable the rapid growth of small firms. Using comprehensive empirical data, this study examines the performances of firms that are directly affected by the program. First, to provide an outline, this study compares the changes in sales, employment, and the number of patents between SBIR awardees and matched firms. It cannot be shown that SBIR awardees have better performance using those indices. Second, this study conducts regression analyses to control for firm sizes, multiple awards, technological levels, the value of venture capital in a region, and population in regions. As a result, this study does not find that SBIR awardees have advantages after applying these detailed controls. This study shows that further detailed investigation is required to prove the benefit of the SBIR program.

Suggested Citation

  • Hiroyasu Inoue & Eiichi Yamaguchi, 2017. "Evaluation of the Small Business Innovation Research Program in Japan," SAGE Open, , vol. 7(1), pages 21582440176, February.
    • Handle: RePEc:sae:sagope:v:7:y:2017:i:1:p:2158244017690791
    DOI: 10.1177/2158244017690791
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    1. Albert N. Link & John T. Scott, 2013. "Employment growth from public support of innovation in small firms," Chapters, in: Public Support of Innovation in Entrepreneurial Firms, chapter 3, pages 41-64, Edward Elgar Publishing.
    2. Goto, Akira & Motohashi, Kazuyuki, 2007. "Construction of a Japanese Patent Database and a first look at Japanese patenting activities," Research Policy, Elsevier, vol. 36(9), pages 1431-1442, November.
    3. Albert N. Link & John T. Scott, 2013. "Employment growth from the Small Business Innovation Research program," Chapters, in: Public Support of Innovation in Entrepreneurial Firms, chapter 4, pages 65-88, Edward Elgar Publishing.
    4. Donald Siegel & Charles Wessner, 2012. "Universities and the success of entrepreneurial ventures: evidence from the small business innovation research program," The Journal of Technology Transfer, Springer, vol. 37(4), pages 404-415, August.
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    6. Albert N. Link & John T. Scott, 2013. "Governments as entrepreneur: Evaluating the commercialization success of SBIR projects," Chapters, in: Public Support of Innovation in Entrepreneurial Firms, chapter 2, pages 25-38, Edward Elgar Publishing.
    7. Lerner, Josh, 1999. "The Government as Venture Capitalist: The Long-Run Impact of the SBIR Program," The Journal of Business, University of Chicago Press, vol. 72(3), pages 285-318, July.
    8. Zvi Griliches, 1998. "The Search for R&D Spillovers," NBER Chapters,in: R&D and Productivity: The Econometric Evidence, pages 251-268 National Bureau of Economic Research, Inc.
    9. Stewart C. Myers & Nicholas S. Majluf, 1984. "Corporate Financing and Investment Decisions When Firms Have InformationThat Investors Do Not Have," NBER Working Papers 1396, National Bureau of Economic Research, Inc.
    10. Archibald, Robert B. & Finifter, David H., 2003. "Evaluating the NASA small business innovation research program: preliminary evidence of a trade-off between commercialization and basic research," Research Policy, Elsevier, vol. 32(4), pages 605-619, April.
    11. Haifeng Qian & Kingsley Haynes, 2014. "Beyond innovation: the Small Business Innovation Research program as entrepreneurship policy," The Journal of Technology Transfer, Springer, vol. 39(4), pages 524-543, August.
    12. Scott J. Wallsten, 2000. "The Effects of Government-Industry R&D Programs on Private R&D: The Case of the Small Business Innovation Research Program," RAND Journal of Economics, The RAND Corporation, vol. 31(1), pages 82-100, Spring.
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    Cited by:

    1. Kohei Takahashi & Yuki Hashimoto, 2023. "Small grant subsidy application effects on productivity improvement: evidence from Japanese SMEs," Small Business Economics, Springer, vol. 60(4), pages 1631-1658, April.
    2. Lanahan, Lauren & Joshi, Amol M. & Johnson, Evan, 2021. "Do public R&D subsidies produce jobs? Evidence from the SBIR/STTR program," Research Policy, Elsevier, vol. 50(7).
    3. Sergio Salles-Filho & Bruno Fischer & Yohanna Juk & Paulo Feitosa & Fernando A. B. Colugnati, 2023. "Acknowledging diversity in knowledge-intensive entrepreneurship: assessing the Brazilian small business innovation research," The Journal of Technology Transfer, Springer, vol. 48(4), pages 1446-1465, August.
    4. Gustavo Dambiski Gomes de Carvalho & Luis Mauricio Martins de Resende & Joseane Pontes & Hélio Gomes de Carvalho & Leozenir Mendes Betim, 2021. "Innovation and Management in MSMEs: A Literature Review of Highly Cited Papers," SAGE Open, , vol. 11(4), pages 21582440211, October.
    5. Feldman, Maryann & Johnson, Evan E. & Bellefleur, Remi & Dowden, Savannah & Talukder, Eshika, 2022. "Evaluating the tail of the distribution: the economic contributions of frequently awarded government R&D recipients," Research Policy, Elsevier, vol. 51(7).

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    More about this item

    Keywords

    Small Business Innovation Research; small firms; Japan; empirical data; policy;
    All these keywords.

    JEL classification:

    • O2 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy
    • O3 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights

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