Employment Growth from the Small Business Innovation Research Program
AbstractThis paper investigates employment growth in small firms funded by the U.S. Small Business Innovation Research (SBIR) program. Using data collected by the National Research Council for each of five federal agencies, our analysis shows that on average over two-fifths of all projects retained 0 employees after completion and over one-third retained only 1 or 2 employees. Thus, on average, the direct impact of SBIR funded projects on employment is small, especially when compared to the mean number of employees in the firms. However, there are substantial cross-project differences in the number of retained employees that are explained by differences in the firms and their SBIR projects. We find across funding agencies that projects with intellectual property—patents, copyrights, trademarks, or publications—retained more employees after completion of the project. Also, we find that the public funding of research by the SBIR program is more likely to stimulate employment when the government created a market for the products, processes, or services developed by the research projects.
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Bibliographic InfoPaper provided by University of North Carolina at Greensboro, Department of Economics in its series Working Papers with number 10-8.
Length: 43 pages
Date of creation: 11 Oct 2010
Date of revision:
small business research; employment growth; entrepreneurship; intellectual property;
Other versions of this item:
- Albert Link & John Scott, 2012. "Employment growth from the Small Business Innovation Research program," Small Business Economics, Springer, vol. 39(2), pages 265-287, September.
- J48 - Labor and Demographic Economics - - Particular Labor Markets - - - Particular Labor Markets; Public Policy
- L53 - Industrial Organization - - Regulation and Industrial Policy - - - Enterprise Policy
- O38 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - Government Policy
This paper has been announced in the following NEP Reports:
- NEP-ALL-2010-10-23 (All new papers)
- NEP-ENT-2010-10-23 (Entrepreneurship)
- NEP-INO-2010-10-23 (Innovation)
- NEP-IPR-2010-10-23 (Intellectual Property Rights)
- NEP-PPM-2010-10-23 (Project, Program & Portfolio Management)
- NEP-SBM-2010-10-23 (Small Business Management)
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- Helge Dauchert & Dietmar Harhoff & Patrick Llerena & Wolfgang Crasemann & Carla Dekker & Oliver Falck & Simon Wiederhold & Ludger Wößmann, 2013. "Innovationen auf Bestellung? Was von einer stärkeren Nachfrageorientierung in der Innovationspolitik zu halten ist," Ifo Schnelldienst, Ifo Institute for Economic Research at the University of Munich, vol. 66(05), pages 03-19, 03.
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