Enterprise policies and R&D support for high-tech SMEs: a multi-perspective approach

This article examines the role of enterprise policy and R&D subsidy schemes in supporting high-tech Small- and Medium-sized Enterprises, by examining a case study of South Korea. A qualitative approach is used to analyse the perspectives of three stakeholder groups, entrepreneurs, national policymakers and policy-practitioners (including street-level bureaucrats working in bodies directly supporting the SMEs), based on semi-structured interviews with 35 participants. The findings suggest, first, that there was a mismatch in the conceptualizations of entrepreneurship, with policymakers and policy-practitioners focusing on entrepreneurship as the event of starting-up a business and entrepreneurs more on innovation. Second, while all groups feel the policy was beneficial, policymakers and policy-practitioners argue it was necessary to have a strict implementation process so-as-to deliver the subsidy fairly across many SMEs. In contrast, entrepreneurs considered such stringent and complicated policy implementation, and policy discontinuities, as impeding the R&D performance of SMEs. Third, although perspectives varied, all believed that flexibility in the policy implementation process is required to improve policy efficacy. The study highlights the critical role of “bottom-up” policy approaches to improve policy efficacy; especially policy-practitioners’ interactions and networking with entrepreneurs in the policy development and implementation processes. This study contributes to understanding the roles and perspectives of stakeholder groups in developing and implementing enterprise policies.