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Subsidizing technology: How to succeed

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  • Soriano, Domingo Ribeiro
  • Peris-Ortiz, Marta

Abstract

Examining the database of applications to the Regional Government of Valencia's Institute for Small and Medium-sized Industries (Spain) for subsidies to aid technological development in small and medium-sized enterprises, this study seeks to explain the approval or rejection and the success or failure of projects that look to receive state funding. The independent variables in the database are particularly concerned with reliance on path dependence. The variable length of membership of the Institute, the number of previous applications, technology level, or belonging to a particular geographical area relate to the accumulation of experience and correspond to the study hypotheses. The study highlights the importance of accumulated experience and firm path dependence for application approval and success of funded projects.

Suggested Citation

  • Soriano, Domingo Ribeiro & Peris-Ortiz, Marta, 2011. "Subsidizing technology: How to succeed," Journal of Business Research, Elsevier, vol. 64(11), pages 1224-1228.
    • Handle: RePEc:eee:jbrese:v:64:y:2011:i:11:p:1224-1228
    DOI: 10.1016/j.jbusres.2011.06.027
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