Template-type: ReDIF-Paper 1.0
Author-Name: Wintjes, R.
Author-Email: wintjes@merit.unu.edu
Author-Workplace-Name: UNU-MERIT
Author-Name: Douglas, D.
Author-Email: d.douglas@staffs.ac.uk
Author-Workplace-Name: Centre for Applied Business Research, Faculty 
of Business, Education and Law, Staffordshire University
Author-Name: Fairburn, J.
Author-Email: j.fairburn@staffs.ac.uk
Author-Workplace-Name: Centre for Applied Business Research, Faculty 
of Business, Education and Law, Staffordshire University
Author-Name: Hollanders, H.
Author-Email: hollanders@merit.unu.edu
Author-Workplace-Name: UNU-MERIT
Author-Name: Pugh, G.
Author-Email: g.pugh@staffs.ac.uk
Author-Workplace-Name: Centre for Applied Business Research, Faculty 
of Business, Education and Law, Staffordshire University 
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. 
Classification-JEL: O38, O32, C14, C34
Keywords: innovation, SMEs, traditional manufacturing industry, public innovation
	 support, government failure, evaluation
Series: UNU-MERIT Working Papers
Creation-Date: 20140431
Number: 2014-033
File-URL: https://unu-merit.nl/publications/wppdf/2014/wp2014-033.pdf
File-Format: application/pdf
File-Size: 453 Kb
Handle: RePEc:unm:unumer:2014033