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The Enrollment in an R&D Subsidy Program for SMEs: Evidence from Southwest Germany

In: Technology Transfer in a Global Economy

Author

Listed:
  • Niclas Rüffer

    (University of Mannheim)

  • Detlef Keese

    (University of Mannheim)

  • Michael Woywode

    (University of Mannheim)

Abstract

The literature on R&D subsidy programs has mainly focused on final R&D outcomes and has largely ignored the processes that operate within subsidy programs. The implementation of programs and allocation of funds might have a profound impact on the final economic outcome though. We discuss the targeting process of R&D subsidy programs and analyze empirically the Enrolment in a particular R&D promotion program. Companies applying for the program we analyze often seem not to have complete knowledge on their projects and project partners when applying for funds. About one out of five companies does not conduct the project it was granted money for. Dropouts are not random; companies that were planning to cooperate with “high quality” R&D institutions in the scope of the project and those from core cities are more likely not to conduct their projects. In line with our expectations we are also able to show that companies which have cooperated with R&D institutions before are more likely to conduct their projects than those without cooperation experience.

Suggested Citation

  • Niclas Rüffer & Detlef Keese & Michael Woywode, 2012. "The Enrollment in an R&D Subsidy Program for SMEs: Evidence from Southwest Germany," International Studies in Entrepreneurship, in: David B. Audretsch & Erik E. Lehmann & Albert N. Link & Alexander Starnecker (ed.), Technology Transfer in a Global Economy, edition 127, chapter 0, pages 185-202, Springer.
    • Handle: RePEc:spr:inschp:978-1-4614-6102-9_11
    DOI: 10.1007/978-1-4614-6102-9_11
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