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Regional differences in effects of publicly sponsored R&D grants on SME performance

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  • Patrik Gustavsson Tingvall

    (Södertörn University and The European Institute of Japanese Studies at the Stockholm School of Economics)

  • Josefin Videnord

    (Uppsala University)

Abstract

This paper explores regional variation in the effects of publicly sponsored R&D grants on SME performance. The results suggest that there is no guarantee that the grants will impact firm growth, either positive or negative. Positive growth effects are most likely to be found for publicly sponsored R&D grants targeting SMEs located in regions abundant with skilled labor, whereas the opposite is found for SMEs located in regions with a limited supply of skilled labor.

Suggested Citation

  • Patrik Gustavsson Tingvall & Josefin Videnord, 2020. "Regional differences in effects of publicly sponsored R&D grants on SME performance," Small Business Economics, Springer, vol. 54(4), pages 951-969, April.
  • Handle: RePEc:kap:sbusec:v:54:y:2020:i:4:d:10.1007_s11187-018-0085-6
    DOI: 10.1007/s11187-018-0085-6
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    Cited by:

    1. 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).

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    More about this item

    Keywords

    R&D grants; SME; Economic growth; Regional growth; Selective policies;
    All these keywords.

    JEL classification:

    • H81 - Public Economics - - Miscellaneous Issues - - - Governmental Loans; Loan Guarantees; Credits; Grants; Bailouts
    • O38 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Government Policy
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • R58 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Regional Development Planning and Policy
    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship

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