Financing patterns of R&D in small and medium-sized enterprises and the perception of innovation barriers in Germany

Heike Belitz and Anna Lejpras

Science and Public Policy, 2016, vol. 43, issue 2, 245-261

Abstract: We analyze the role public support plays in small and medium-sized enterprises (SMEs) R&D financing as well as these firms’ assessments of financing conditions in the context of other framework conditions for innovation. Using the sample of 2,708 German SMEs that participated in public R&D promotion programs during 2005–10, we identify four unique types of R&D financing. Firms are generally positive about public financing of R&D in Germany, although a group of R&D companies without a track record that wish to introduce an innovation to the market find it difficult to procure a loan. SMEs perceive obstacles to innovation primarily in the non-financial sphere, namely, the supply of skilled personnel, market regulation, and competition conditions. Therefore, future work on innovation policies for SMEs should place greater emphasis on the non-financial external framework conditions for firm R&D and innovative activity.

Date: 2016
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Citations: View citations in EconPapers (3)

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Persistent link: https://EconPapers.repec.org/RePEc:oup:scippl:v:43:y:2016:i:2:p:245-261.

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