Innovation Voucher Research Articles

Additionalities of innovation voucher schemes: evidence from Lithuania

Purpose The purpose of this study is to improve the understanding of the impact of innovation vouchers (IVs) by assessing the additionality of IV instruments supporting business-research collaboration in Lithuania. Design/methodology/approach The approach relies on studying potential input, behavioural and output additionalities created by IVs. Adopting this perspective, the paper outlines a theoretical framework that indicates the expected contribution of IV schemes and empirically tests its implications. The model is tested by analysing the Inno-vouchers LT instrument implemented in Lithuania in 2012–2014. The study relies on a counterfactual impact evaluation (CIE) and descriptive statistical analysis of survey data of the applicants for IVs. Findings The study findings are structured around three types of additionalities. Evidence on input additionality of IV projects provides mixed results, but a significant share of projects included private investment that would not exist without Inno-vouchers LT. Yet, many beneficiaries would also have implemented projects without public support. Both survey data analysis and CIE provide evidence of behavioural additionality, albeit limited. They strongly support the hypothesis that IVs increase companies’ willingness to cooperate with research organisations. Finally, evidence on output additionality is ambiguous. Long-term or indirect output additionality (measured by employment and turnover) seems to be non-existent according to CIE results. Originality/value Despite the policy relevance and use of IVs instruments, evidence on the effectiveness is limited. The authors present findings on IVs additionality and suggest avenues for further research.

Effect of innovation voucher-based collaboration on high-tech SMEs’ innovation: the moderating role of knowledge stock

ABSTRACT Innovation voucher is an “innovation currency” issued by the government to subsidize high-tech small and medium enterprises (SMEs) to purchase services from external knowledge providers. Based on the knowledge-based view, this study examines the effect of the breadth and depth of innovation voucher-based collaboration on exploratory innovation and exploitative innovation. We use a sample of 865 high-tech SMEs that received innovation voucher support in Shanghai from 2019 to 2020. The results demonstrate that collaboration breadth is beneficial to SMEs’ exploitative innovation, and knowledge stock plays a positive moderating role in the relationship; while collaboration depth is detrimental to SMEs’ exploratory innovation, and knowledge stock negatively moderates the effect. This study adds empirical evidence to the role of innovation voucher cooperation in promoting innovation among high-tech SMEs, and it is an important guide for high-tech SMEs to carry out innovation activities in the context of innovation voucher policy.

Innovation vouchers and cooperation: a different approach in two countries with a shared history

Innovation vouchers and cooperation: a different approach in two countries with a shared history

How creative vouchers can allocate public resources for innovation effectively

PurposeThe purpose is to assess the usefulness of creative vouchers, a specific kind of technology and innovation vouchers (small grants usually given to SMEs to acquire external knowledge) where the knowledge suppliers are creative firms such as design agencies.Design/methodology/approachA multiple case analysis of four EU-funded pilot voucher schemes was carried out through project reports and semi-structured interviews with relevant stakeholders.FindingsThe authors show that creative vouchers are effective policy instruments despite the limited amount of money involved because they trigger new innovation trajectories often in a serendipitous way. The authors also show that the quality of projects and satisfaction of the beneficiaries increase when both proposals and suppliers are screened.Research limitations/implicationsThe authors’ conclusions are based on four pilot projects in a specific region of the world (Western Europe). Though two of them were extended to a much bigger scale, their generalizability may be limited. Moreover, the limited number of cases does not permit an analytical evaluation of all the voucher schemes mechanisms.Practical implicationsThe findings of this paper can be very useful to policymakers designing voucher schemes and to the companies involved, whether they are providers or beneficiaries. In particular, the voucher allocation mechanisms may have a strong impact on the success of the program.Social implicationsThe innovation spurred by the collaboration with creative firms is generally neither energy-intensive nor capital intensive, but brain intensive, and this is the best way to leverage on the talent of local creative and make companies create value based on immaterial resources.Originality/valueTo the authors’ knowledge, this is the first study of creative vouchers after Bakhsi et al., 2015, and the only one involving several schemes in different countries. It shows the innovation potential of such a little known policy instrument for SMEs. Moreover, it provides insight on how to design a voucher scheme in order to improve its effectiveness.

ГРАНТОВА ПІДТРИМКА МАЛОГО ТА СЕРЕДНЬОГО БІЗНЕСУ У ФОРМІ ВАУЧЕРІВ

The article emphasizes the fact that grant support in the form of vouchers was not often found in Ukraine among the programs of international, national and regional donors, but recently new projects and programs have appeared in which micro, small and medium-sized businesses have the opportunity use voucher assistance to pay for works and services within the scope of their activities. Voucher is defined as the right to non-refundable financial assistance for small business entities – legal entities and individual entrepreneurs to reimburse part of the cost of works and services. Types of vouchers are given: innovation vouchers, marketing vouchers, vouchers for consulting services. The article examines grant support in the form of vouchers on the example of several projects and programs operating in Ukraine during the war. Opportunities for business in the Project "Climate Innovation Vouchers" and the Program of Innovation Vouchers from the Ukrainian Startup Fund were demonstrated. The study demonstrated under what conditions and to whom grant-makers give priority to voucher assistance. Success stories of the use of grants in the form of vouchers by representatives of micro, small and medium businesses are presented. Several programs were demonstrated, according to which the Lviv City Council and the Lviv Regional State Administration issue grants in the form of vouchers to business representatives. It was also emphasized how the Lviv City Council joined the government grant support within the "eRobota" project by starting vouchers for processing enterprises. The main project activities that can be supported by the grantor in the form of vouchers are considered. The list of purposes for which vouchers are provided is given. It was emphasized that grant instruments in the form of vouchers are not very popular in Ukraine. It is emphasized that large grant programs do not use vouchers as a form of grant; representatives of local authorities, who could act as grant providers, lack the experience and creativity to introduce non-standard solutions to stimulate business; entrepreneurs, in turn, are not sufficiently aware of the benefits of voucher support from those funds whose grants are available to entrepreneurs from all regions of Ukraine.

Can innovation vouchers promote SMEs’ innovation in China: A flexible conditional difference-in-differences analysis

Abstract Innovation voucher is a market-oriented policy instrument to encourage the external resource utilization of small and medium enterprises (SMEs) so as to foster their innovation activities and outcomes. This study extends the extant literature on the effectiveness of innovation voucher policy by investigating whether this small innovation subsidy can promote the innovation output of SMEs in China, a typical emerging economy, and identifying policy-relevant heterogeneities. By using the samples of Chinese technology-based SMEs and a flexible conditional difference-in-differences approach, our results show that innovation vouchers generally do promote SMEs’ innovation output and exert a more salient effect on medium-sized enterprises. Furthermore, the incentive effect of innovation vouchers is stronger on the recipients in the regions where the institutional environment is more developed. This study has important implications for policy makers and SMEs.

Assessing the effects of a deliberate policy mix: The case of technology and innovation advisory services and innovation vouchers

While innovation policy mixes combining several policy instruments have been advocated as a response to complex problems, there is very little evidence of their effectiveness compared to that of individual instruments. By considering a set of Italian regional policy programmes implemented in 2011–2014, we analysed a policy mix composed of: (i) technology and innovation advisory services, the aim of which is to help small and medium enterprises (SMEs) to gain a better awareness of their innovation needs and of how to address them; and (ii) innovation vouchers, which are used to subsidise SME purchases of knowledge-intensive services. To draw causal inferences on their differential effectiveness, we adopted a propensity-score-matching approach extended to multiple treatment levels.We found that advisory services are more effective than innovation vouchers and as effective as policy mixes in increasing SME propensity to innovate and engage in R&D collaborations. Conversely, policy mixes are more effective than each individual instrument in increasing productivity. Hence, merely providing SMEs with technology and innovation advice is not sufficient to elicit productivity improvements; SMEs also need to act on such advice by working with external providers of knowledge-intensive services in order to implement efficiency-producing changes.

Why and How Innovation Vouchers Work: Disentangling the Roles of Serendipity and Funding

ABSTRACT Innovation vouchers are policy instruments supporting the collaboration of small and medium enterprises (SMEs) with specialized knowledge suppliers. These innovation vouchers are typically appreciated by beneficiaries because of their simple application and reporting procedures. However, because of their small size, innovation vouchers seem to have relatively limited impacts. This study analyzes the outcome of an innovation voucher scheme through a survey of 582 Italian firms receiving these vouchers in 2011. Findings show that the effects of the vouchers are mainly indirect: the vouchers foster new skills development and trigger unforeseen results. Given the local nature of the voucher measure, results also control for geographical, technological, and social proximity among beneficiaries and suppliers.

Subsidized R&D collaboration: The causal effect of innovation vouchers on innovation outcomes

We study the causal effect of subsidized R&D collaboration on external collaborations and innovation outcomes of small and medium-sized enterprises (SMEs). In particular, we make use of a randomized controlled trial to analyze the effect of a nationwide innovation voucher scheme in the United Kingdom that grants SMEs across all industries financial support of up to 5,000 GBP for engaging the services of experts, e.g., from universities, research institutes or IP advisors, when pursuing an innovation-related project. Our results show that the innovation voucher program has an immediate, short-term impact on the execution of these innovation projects with positive effects on product and service development, internal processes, and intellectual property protection. However, we also observe that these results fade out quite quickly, i.e., two years after the intervention many effects caused by the innovation voucher program have disappeared. Based on our results, we also provide some practical guidance to further improve the effectiveness of voucher programs.

Огляд ландшафту інструментів інноваційної політики ЄС: висновки для України

The need to modernize and critically rethink the state of Ukraine`s national innovation policy and the tools for its implementation is justified. This is due to the slowdown of innovation processes in the country over the past five years and the chronic problems that have accompanied the national research and innovation sphere for almost the entire period of independence. To that end, it is necessary to rely on the theoretical argumentation of the grounds for state intervention in innovation from the standpoint of various economic schools, and European experience in the development and implementation of innovation policy, which is relevant in the context of Ukraine's European integration, as well as taking into account modern challenges and the specifics of the social and institutional arrangements of Ukraine as a developing country. This article identifies and summarizes the most common instruments used at the level of the EU and its member states to support research, development, and innovation. These include research, collaboration, doctoral and seed grants, public procurement, start-up funds, venture funds, science and technology parks, clusters, technology transfer offices, technology centers, innovation loans and innovation vouchers, tax incentives, "living labs", digital innovation hubs, etc. Some of them have been analyzed to illustrate the similarities and differences in the innovation policy of the EU member states. It has been determined EU member states still tend to use supply tools, supporting knowledge generation to a greater extent, and tools to stimulate demand for innovation are much less common in them, which does not allow the EU to catch up with world leaders, in particular the United States, Japan and South Korea, for the performance of national innovation systems. Based on the analysis of the European experience in supporting and stimulating innovation, proposals are formulated for the development of a national innovation policy for an effective post-war recovery.

INNOVATION VOUCHERS AS A MODERN FINANCIAL TOOL FOR THE DEVELOPMENT OF SMES

The subject of the study is innovation vouchers as a modern tool to support "green" SME projects. Innovation vouchers are financial instruments that perform a number of functions for the development of SMEs. They can stimulate its cooperation between research institutes or universities in the development of innovations and implementation of innovative solutions. It can become an alternative more effective tool for the use of public funds. Innovation vouchers formed the basis of financial support for the implementation of the development strategy of the region in the context of smart specialization. In the countries of the Eastern Partnership, such tools are only part of the practice, while the OECD countries have been actively using them for more than 10 years. In this regard, it was decided to analyze existing SME support programs using innovation vouchers in OECD countries and to give practical recommendations for the implementation of foreign experience in the development of SME support policies in the Eastern Partnership countries. The main method of research is the analytical method. A critical analysis of the scientific literature and policy documents helped form the concept of the use of innovation vouchers by SMEs. The study analyzed 47 programs to support SMEs with innovation vouchers, which operated for 12 years (from 2008 to 2020). Both quantitative indicators (total value of the program with innovation vouchers, maximum voucher value, etc.) and qualitative data (target group, directions of innovation financing) were taken into account. Classification features of innovation vouchers, their target audience, distribution of programs among target group participants (SMEs, companies of different ages, universities, state research institutes, microbusinesses, incubators, gas pedals, science parks, etc.), cost of vouchers, validity of innovation vouchers were determined. The main conclusion may be that when introducing innovation vouchers as tools to support micro-, small- and medium-sized businesses, it must be taken into account that the circle of knowledge providers must be broad (it may include private and public research organizations, universities, and other relevant types of providers). The requirement for co-financing needs to be met as well in order to reduce the risks of inefficient use of funds. In addition, support for innovative enterprises should be broadcast at all levels: local and national. The following target stakeholder groups can benefit from the results of the study: research institutes, universities, SMEs, policy makers, government, NGOs involved in innovation support, etc.

Innovation Vouchers and the Sustainable Growth of High-Tech SMEs: Evidence from China

Innovation has become an essential source of sustainable growth for most firms, especially small- and medium-sized enterprises (SMEs). Governments around the world widely implement innovation vouchers to promote innovation in SMEs. This study empirically explores the effects of innovation vouchers in stimulating patentable innovation and ultimately enhancing firms’ financial performance. Using a panel of 1274 listed SMEs from the Small and Medium Enterprise Board (SMEB) and the Growth Enterprise Board (GEB), we find that innovation vouchers lead firms to utilize knowledge-intensive services and significantly increase their financial performance. We further document that patentable innovations mediate the relationship between innovation vouchers and firms’ financial performance. We report that the effects of innovation vouchers on financial performance are more prominent for SMEs with limited external informational resources. We believe that our study yields novel evidence and sheds further light on the important policy implications of innovation vouchers to facilitate the sustainable growth of SMEs.

The Impact of Innovation Vouchers on Green Innovation Efficiency

Innovation vouchers are part of the demand-side innovation policies that support innovation development in small and medium-sized enterprises (SMEs) by encouraging them to collaborate with universities and organisations offering knowledge-intensive services (KIS). Based on data from 353 high-tech SMEs in China, we explore the impact of innovation vouchers on green innovation efficiency. Our findings show that innovation vouchers can facilitate green innovation by 1) increasing senior managers’ risk-taking propensity, 2) reducing financial risk and 3) increasing knowledge sharing. When local governments pursue sustainable development and firms face regulatory changes, innovation vouchers could help to promote green innovation. Furthermore, our green innovation efficiency indicator shows that innovation vouchers could also increase green innovation efficiency at the enterprise level. Our research extends innovation theory by deepening our understanding of how demand-side policies influence organisations’ innovation activities and provide practical implications for how policymakers can design policies to encourage sustainability.

Collaboration potential between low-capacity SMEs and academic researchers determined by symmetry of motivation

While university-industry collaboration has received widespread attention in academic literature and policy making, there is still limited knowledge on how low-capacity SMEs engage in open innovation activities. Building on a survey conducted among Estonian SMEs with limited innovation capacity, our research focuses specifically on aspects that help low-capacity SMEs and academic researchers to collaborate.The sample was selected purposefully using an innovation voucher database. Our research results indicate that collaboration is fostered by the perceived symmetry of motivation between partners, or paradoxically, the perceived higher motivation of the academic partner rather than the motivation of the SME itself. Our analysis suggests that motivation symmetry between partners plays a crucial role in determining the collaboration process and outcome between low-capacity SMEs and academic researchers.

Economic Entities in the Context of Technological Modernization of Economy: Priority Trends Taking into Account Digital Transformation

The basis of this study is the use of elements of an innovative methodology of post-institutional analysis based on the interdisciplinary synthesis, which involves overcoming the monodimensionality, dichotomization and dogmatism of many concepts of orthodox neo-institutionalism. The main idea of this study is to apply an interdisciplinary approach to study the impact of technological modernization on economic entities and identify priority trends taking into account digital transformation of public relations. The assessment of the current problems under study and the conceptual framework of the study were carried out on the basis of studying and rethinking the results of numerous works by European and Russian scientists, as well as the legislation of the Russian Federation. The regulatory framework covers current domestic legislation in the field of civil, business and tax law, which regulates innovative activities. As a result of the conducted research, it is established that innovative activity is managed by a large number of regulations of various industry affiliation, which do not have any systemic connection with each other. The existing terminological intricacy is revealed in innovation legislation. The current legislation, including at the level of the constituent entities of the Russian Federation, does not set the criteria and the indicators of an innovative organization. This serves as a factor that both complicates obtaining state support and hinders the wider introduction of innovations. The mechanisms of stimulating innovative activity provided by the tax legislation are investigated, and their effectiveness is also evaluated. The article proves the need for adoption of a special Federal Law aimed at regulating innovative legal relations. The need to improve the tax legislation is justified in terms of creating a special tax regime for subjects of innovative activity. It is proposed to expand the measures of state support for innovation activity within the subjects in the Russian Federation by introducing the institute of innovation voucher. The role of responsible innovations for sustainable business development in the period of digital transformation of society is defined.

Improvement of the Mechanism for Funding Innovation Activities in a Region in the Context of Sustainable Development

Introduction. In order to ensure sustainable development of modern society, a transition to an innovative model of economic development is necessary. This requires an annual increase in investment in the sphere of innovation, as well as significant expenditures on fundamental and applied research and development of new technologies. This necessitates the creation of an effective mechanism of financial support for innovative activities based on public and private funding. The aim of this study is to analyze the existing mechanism for funding innovation activities in the Republic of Mordovia and to put forward suggestions on how to improve it. Materials and Methods. The authors analyzed statistical data from the Ministry of Industry, Science and New Technologies of the Republic of Mordovia and from the territorial office of the Federal State Statistics Service in the Republic of Mordovia that characterize the dynamics and intensity of innovation processes in the region and the system of funding them. The correlation and regression analysis, as well as the trend method were used to construct an econometric model making it possible to determine the impact of the level of innovation costs on the dynamics of change in the gross regional product. Results. The current state of the innovation infrastructure as well as that of the innovation activities in the Republic of Mordovia has been assessed. The sources of financial support for the innovation process in a region have been identified. In order to find new sources of funding innovations, it has been proposed to use an innovation voucher that would stimulate commercialization of intellectual activities in small and medium-sized enterprises. A mechanism has been developed for regional authorities to subsidize promising projects through public-private partnerships, with a view to minimizing nonsystematic risks. Discussion and Conclusion. The recommendations on the search for new instruments to attract financial resources for innovation and to stimulate demand for innovation have been developed and will help Mordovia to increase its innovation activity. The results of this research may be used by regional authorities to develop regional programs for scientific and innovative development.

Science Intensity of the Business Sector in Russia: An Analysis and Development Proposals

Introduction. In the context of global competition between intellectual industries and building transnational structures that ensure socio-economic development, joining the world’s top 5 most innovative economies is possible only in case of increasing the science intensity of the business sector of the economy. Based on the results of the study conducted, the article gives an analysis of the industry average values of the costs of enterprises for research and development (R&D) in economically developed countries and outlines proposals for achieving a similar level of costs for such work in Russia. Materials and Methods. The study used data from the Organisation for Economic Co-operation and Development international statistical database, those from Rosstat, and reports from companies implementing innovative development programs. The results of the implementation of the programs for innovative development of Russian state corporations were evaluated. The study employed the methods of economic analysis, comparison, generalization, induction, and deduction. Results. On the basis of the study conducted, the authors have proposed recommendations for bringing the R&D costs to the level of the industry average values in economically developed countries. The authors have also proposed to secure the coefficients of the R&D costs corresponding to those in countries leading in innovative development in the programs of innovative development of organizations, taking into account the industry specifics. The authors have recommended introduction of such tools that ensure the achievement of the level of investment expenditures in R&D of economically developed countries, as the “qualified customer” model and the innovation voucher. Discussion and Conclusion. Based on the results of the analysis performed, a conclusion has been drawn that not all state corporations fully implement the assigned tasks. In order to ensure the technological development of the country, a number of federal executive bodies have been implementing a set of measures which lack synchronization. The results of this study can be used by public authorities when making managerial decisions in research and development.

Subsidized R&D Collaboration: The Effect of Innovation Vouchers on Innovation Activity & Performance

We study the causal effect of subsidized R&D collaboration on innovation performance. In particular, we make use of a randomized controlled trial to analyze the effect of an innovation voucher scheme in the United Kingdom that grants small and medium-sized enterprises financial support of up to 5,000 GBP for engaging the services of experts, e.g., from universities, research institutes or IP advisors, when pursuing an innovation-related project. Our findings provide evidence that the innovation voucher program successfully accelerates the execution of R&D projects with short-term effects on innovation outcomes. We find that being awarded a voucher has a positive short-term impact on product development for firms that collaborated with a university. In addition, we find a positive effect on the number of patent applications for firms indicating to be in need for specialist IP knowledge. In terms of collaboration outcomes, we can show that subsidized university-industry collaborations result in an increase of joint ventures two years after the voucher has been awarded.

Subsidized R&D Collaboration: The Causal Effect of Innovation Vouchers on Innovation Performance

We study the causal effect of subsidized R&D collaboration on innovation performance of small and medium-sized enterprises (SMEs). In particular, we make use of a randomized controlled trial to analyze the effect of a nationwide innovation voucher scheme in the United Kingdom that grants SMEs across all industries financial support of up to 5,000 GBP for engaging the services of experts, e.g., from universities, research institutes or IP advisors, when pursuing an innovation-related project. Our results show that the innovation voucher program successfully promotes the execution of these innovation projects with positive short- and medium-term effects on product and service development, internal processes and intellectual property protection. Based on our results, we also provide some practical guidance to further improve the effectiveness of voucher programs.

Design as a Catalyst for Innovation in Irish Industry. Evolution of the Irish Innovation Voucher initiative within Design + Technology Gateway

(2019). Design as a Catalyst for Innovation in Irish Industry. Evolution of the Irish Innovation Voucher initiative within Design + Technology Gateway. The Design Journal: Vol. 22, Running with Scissors: 13th International Conference of the European Academy of Design, Dundee, 10-12th April, 2019, edited by Louise Valentine, Joanna Bletcher and Leon Cruickshank, pp. 217-228.