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

PublikationArtikel (med peer review)

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

Sammanfattning

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.
Related content: Working paper No. 289

Gustavsson Tingvall, P. & Videnord, J. (2020). Regional differences in effects of publicly sponsored R&D grants on SME performance. Small Business Economics, 54, 951-969. DOI: 10.1007/s11187-018-0085-6

Liknande innehåll

Bokkapitel

Do Targeted R&D Grants toward SMEs Increase Employment and Demand for High Human Capital Workers?

Daunfeldt, S. O., Halvarsson, D., Tingvall, P. G., & McKelvie, A.

Publiceringsår

2022

Publicerat i

Springer.

Sammanfattning

Most previous studies on the employment effects of government R&D grants targeting SMEs are characterized by data-, measurement-, and selection problems, making it difficult to construct a relevant control group of firms that did not receive an R&D grant. We investigate the effects on employment and firm-level demand for high human capital workers of two Swedish programs targeted toward growth-oriented SMEs using Coarsened Exact Matching. Our most striking result is the absence of any statistically significant effects. We find no robust evidence that the targeted R&D grant programs had any positive and statistically significant effects on the number of employees recruited into these SMEs, or that the grants are associated with an increase in the demand for high human capital workers. The lack of statistically significant findings is troublesome considering that government support programs require a positive impact to cover the administrative costs associated with these programs.

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Working paper

Ratio Working Paper No. 341: Recruitment of scarce competences to rural regions: Policies to promote recruitment

Nyström, K.

Publiceringsår

2020

Publicerat i

Ratio Working Paper

Sammanfattning

This paper studies the perceived difficulty of recruiting scarce competences to rural regions. Furthermore, the role of policy in facilitating and enhancing recruitment to and better skills matching in rural regions is discussed. Based on a survey targeted to the business sections in Swedish municipalities, the results show that recruitment is perceived to be difficult in both rural and non-rural regions. However, recruitment problems in the public sector are more pronounced in rural municipalities. Nevertheless, recruitment to the public and business sectors are perceived to be equally difficult in rural regions. Both rural municipalities and non-rural municipalities state that the difficulty of recruiting the right skills results in a lack of skills matching and constitutes an obstacle to growth. Which policies can help remedy recruitment problems in rural regions? The pecuniary incentive of writing off student debt is perceived to be the most promising policy, but respondents also believe that non-pecuniary support such as relocation support for accompanying persons and tandem recruitment should be implemented to a greater extent. Finally, the need for flexibility and policies that can be adapted to the regional demand for labour are stressed. This regards for example the adaption of education programmes to local needs and rules and regulations.

Artikel (med peer review)

Subsidy Entrepreneurs: An Inquiry into firms seeking public grants

Halvarsson, D, Gustafsson, A. & Gustavsson Tingvall, P.

Publiceringsår

2020

Publicerat i

Journal of Industry Competition and Trade

Sammanfattning

This paper studies the incentives and characteristics of firms that apply for, and eventually receive, one or multiple governmental grants intended to stimulate innovation and growth. The analysis departs from a contest model in which entrepreneurs are free to allocate their effort between production and seeking grants. The results suggest that highly productive entrepreneurs abstain from seeking grants, moderately productive firms allocate a share of their effort to grant seeking, and low-productivity firms allocate most resources to seeking grants. Due to their efforts in seeking grants, these low-productive subsidy entrepreneurs also have a relatively high probability of receiving the grants. Using comprehensive data over grants from the three largest grant-distributing agencies in Sweden, we find concordant evidence of a negative relation between the probability of receiving a grant and firm productivity. As we go from single- to multiple-grant-supported firms, this negative relation becomes more pronounced.

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