The impact of public R&D subsidy on small firm productivity: evidence from Korean SMEs

The impact of public R&D subsidy on small firm productivity: evidence from Korean SMEs This paper explores the effects of R&D promotion policy on SME performance. We use a large panel data set on public R&D subsidies to Korean manufacturing firms. We control for counterfactual outcomes employing the DID (difference in differences) estimation procedure as well as for the endogeneity of the R&D investment and the R&D subsidy using the 2-stage Tobit/Logit DPD (dynamic panel data) procedure. We find significant evidence for positive effects of the public R&D subsidy on both the R&D expenditure and the value added productivity of Korean manufacturing SMEs. The policy thus appears to have been successful in fostering technological advancement and in promoting economic growth. Small Business Economics Springer Journals

The impact of public R&D subsidy on small firm productivity: evidence from Korean SMEs

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Springer US
Copyright © 2016 by Springer Science+Business Media New York
Business and Management; Management; Microeconomics; Entrepreneurship; Industrial Organization
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