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National and international R&D support programmes and technology scouting in European small and medium enterprises (SMEs)

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  • Radicic, Dragana

Abstract

This paper evaluates the effectiveness of national and international R&D support programmes on firms' technology scouting, defined as firms' use of external knowledge sources. Drawing on a unique dataset on R&D support programmes for small and medium-sized enterprises (SMEs) operating in both manufacturing and service sectors across 28 European countries, this study reports treatment effects estimated by the copula-based endogenous switching model, which takes into account unobserved firm heterogeneity. Empirical results indicate that R&D support programmes have heterogenous effects on technology scouting, whereby a crowding out effect arises in the case of a short-run scouting, while additional effect are mostly reported for strategic external knowledge sourcing. Moreover, our results suggest that unfavourable, crowding out, effects could be reduced, if not eliminated, by a random distribution of public funding.

Suggested Citation

  • Radicic, Dragana, 2019. "National and international R&D support programmes and technology scouting in European small and medium enterprises (SMEs)," LEAF Working Paper Series 19-05, University of Lincoln, Lincoln International Business School, Lincoln Economics and Finance Research Group (LEAF).
    • Handle: RePEc:zbw:leafwp:1905
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    Keywords

    Technology scouting; External knowledge search; European SMEs; copula-based endogenous switching model;
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