IDEAS home Printed from https://ideas.repec.org/p/vlg/vlgwps/2008-12.html
   My bibliography  Save this paper

Do R&D subsidies affect SME's: access to external financing

Author

Listed:
  • Meuleman, M.
  • De Maeseneire, W.

    (Vlerick Leuven Gent Management School)

Abstract

Many countries spend sizeable sums of public money on R&D grants to alleviate debt and equity gaps for small firms’ innovation projects. In making such awards, knowledgeable government officials may certify firms to private financiers. This paper investigates whether government subsidies to R&D enhance SMEs’ access to external financing due to this certification effect. Using a unique Belgian dataset of 1107 approved requests and a control group of 501 denied requests for a specific type of R&D grant, we examine the impact on small firms’ external equity, short term and long term debt financing. We find that obtaining a R&D subsidy provides a positive signal about SME quality and results in better access to long-term debt.

Suggested Citation

  • Meuleman, M. & De Maeseneire, W., 2008. "Do R&D subsidies affect SME's: access to external financing," Vlerick Leuven Gent Management School Working Paper Series 2008-12, Vlerick Leuven Gent Management School.
  • Handle: RePEc:vlg:vlgwps:2008-12
    as

    Download full text from publisher

    File URL: http://www.vlerick.be/en/9050-VLK/version/default/part/AttachmentData/data/vlgms-wp-2008-12.pdf
    Download Restriction: no

    More about this item

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:vlg:vlgwps:2008-12. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Isabelle Vandenbroere). General contact details of provider: http://edirc.repec.org/data/vlgmsbe.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.