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Evaluation of Small Business Innovation Research Programs in Japan

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  • Inoue, Hiroyasu
  • Yamaguchi, Eiichi

Abstract

Subsidizing small high-technology firms is now considered to be important in stimulating economies throughout the world. This is because fast growing small firms create new markets and jobs. The Small Business Innovation Research (SBIR) program has played an important role in the United States in subsidization providing two billion dollars every year. Japan started its own SBIR program inspired by that in the United States. This paper examines the direct effects of Japan's SBIR program through the attributes of firms. First, we compared the changes in sales, employment, and the number of patents between SBIR awardees and matching firms. However, SBIR awardees did not demonstrate better performance in sales or employment. Therefore, it seems that the direct effect of Japan's SBIR program has not produced positive results. However, it did increase the number of patents. Second, we examined the overall results by using regression models. Even with control variables, these results were unchanged. Therefore, we concluded that the results were robust.

Suggested Citation

  • Inoue, Hiroyasu & Yamaguchi, Eiichi, 2014. "Evaluation of Small Business Innovation Research Programs in Japan," MPRA Paper 53898, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:53898
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    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.
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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; Research policy; Innovation; SBIR; Japan;
    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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