Factors explaining firms’ receipt of public funding for innovation: the case of Chilean small and medium-sized enterprises

Abstract

This study uses innovation surveys conducted in Chile to evaluate the factors that may explain public financing for innovative activities in small and medium-sized firms (SMEs). The analysis is important because small and medium sized firms are the focus of the existing public programs. The estimated results with binary choice models are contrasted with cross-sectional and pseudo-panel data, observing that firms with some types of expenditures on innovative activities in previous year have more probability to obtain public financing.