Template-type: ReDif-Paper 1.0
Author-Name: Radicic D. 
Author-Name: Pugh G. 
Author-Name: Hollanders H.J.G.M. 
Author-Name: Wintjes R.J.M. 
Author-workplace-name: UNU-MERIT
Title: The impact of innovation support programmes on SME innovation in traditional manufacturing industries: an evaluation for seven EU regions
Abstract:  This study investigates the impact of innovation support programmes on  SME innovation in traditional manufacturing industries in seven EU  regions. Recent literature identifying sources of potential government  failure in innovation policy suggests that the effects of public support  measures to increase private innovation may be disappointing. Our  results are consistent with this hypothesis, yet also suggest a  direction for policy reform to overcome government failure and, thereby,  to increase the potential additionality of innovation support  programmes. Innovation support programmes in the EU typically adopt a  cream skimming selection strategy namely, programme managers  systematically select firms on the basis of observable characteristics  conducive to innovation. The econometric analysis of a new survey  database reported in this paper suggests that cream skimming leads to  firms being selected for programme participation that benefit less than  would randomly selected firms. The policy corollary is that, subject to  due diligence checking, allocation of innovation support by lottery  should give rise to greater programme additionality than does the  prevalent cream skimming approach. We conclude with some practical  guidelines for allocation by lottery, which were developed for a  recently launched innovation support programme for SMEs.     Key words innovation; SMEs; traditional manufacturing industry; public  innovation support; government failure; evaluation
Keywords: Semiparametric and Nonparametric Methods: General; Multiple or Simultaneous Equation Models: Truncated and Censored Models; Switching Regression Models; Management of Technological Innovation and R&D; Technological Change: Government Policy; 
Classification-JEL: O32; O38; C14; C34; .
Series:  Working Papers
Creation-Date: 2014
Number: 033
File-URL: http://pub.maastrichtuniversity.nl/d58cc147-c79b-4529-ac1f-e87d8bbb88d1
File-Format: application/pdf
File-Size: 453149
Handle: RePEc:unm:unumer:2014033