Scandinavian Working Papers in Economics

Ratio Working Papers,
The Ratio Institute

No 289: Regional Effects of Publicly Sponsored R&D Grants on SME Performance

Patrik Gustavsson Tingvall () and Josefin Videnord ()
Additional contact information
Patrik Gustavsson Tingvall: The Ratio Institute, Postal: The Ratio Institute, P.O. Box 5095, SE-102 42 Stockholm, Sweden
Josefin Videnord: The Ratio Institite, Postal: The Ratio Institute, P.O. Box 5095, SE-102 42 Stockholm, Sweden

Abstract: 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. Studying the heterogeneity of the results, 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 workers.

Keywords: R&D grants; SME; Economic growth; Regional growth; Selective policies

JEL-codes: H81; O18; O38; O40; R11; R58

32 pages, April 18, 2017

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