Public Innovation Support Research Articles

How Public Support for Innovation Affect Entrepreneurial Orientation of Mexican Companies: The Moderating Effect of Being a Family Business

AbstractWe study the relationships between the input and network additionalities prompted by public support for innovation and entrepreneurial orientation and whether being a family business moderates these relationships. The results, based on a dataset of 115 Mexican firms, show that the changes generated by public support for innovation programmes encourage entrepreneurial orientation. Additionally, family firms have a differential ability to transform input and network additionalities into entrepreneurial orientation. This study contributes theoretically and practically by highlighting the positive effects of research and development support programmes on a firm’s entrepreneurial orientation. It also points out the need to consider family status when designing public policies, since our results reveal that family and non-family firms are not equally efficient in transforming resources into entrepreneurial orientation and that family firms that drive networking through the rules of the subsidy do not trigger the expected potential benefits.

Comparison of the Profile of Portuguese Companies That Receive Public Support for Innovation: National Support vs. European Support

Innovation has emerged as the key driver of economic growth, technological advancement, and societal well-being. Recognizing the significance of fostering innovation, governments and policymakers worldwide have increasingly emphasized the need for public support to bolster the innovation ecosystem. This article explores the crucial importance of public support for innovation and delves into the characteristics of companies that receive such support. Based on the Community Innovation Survey of 2014, 2016, and 2018, information was compiled from 1857 companies. Of these companies, common to these 6 years of information, 755 received national support for innovation and 490 received European support. Based on these data, the main objective was to identify and distinguish the characteristics of Portuguese companies that receive European support and national support for innovation. To achieve this objective, logit models were estimated using Stata software. The results suggest that national support favors companies that belong to sectors with greater technological development, which develop new products and processes. Companies that establish cooperation agreements and that belong to groups of companies are also preferred for national support. In turn, of the companies that received European support, it appears that there is less differentiation in preference for the level of technological development. Companies that invest internally in R&D and that establish cooperation agreements for innovation are more likely to obtain European support, as are companies that have a higher proportion of workers with higher education. Finally, both national and European support favor companies with a greater volume of business from foreign markets.

Unlocking the Code to Continuous Innovation: A Study of Key Determinants for Serial Innovators

This study investigates the fundamental role of collaboration in promoting a culture of continuous innovation in companies, driving them to become serial innovators, as evidenced by their industrial property registrations. Furthermore, it explores, in an innovative way, how various factors, such as the level of technological advancement in the sector, government support for innovation, investments in research and development, the degree of international involvement, and the level of education of employees, influence the probability of a company achieving the status of serial innovator. Based on data extracted from CIS reports spanning from 2012 to 2018, this research employs Logit models to explore the relationship between these variables. The findings clarify the positive impact of collaboration on a company’s ability to sustain innovation over time, thereby establishing itself as a serial innovator. The promotion of collaborative networks and partnerships with external entities, such as partner companies, research institutions, and government organizations, emerges as a powerful strategy for promoting innovation in organizational contexts. Furthermore, the study reveals the critical roles played by public support for innovation, the educational level of the workforce, and investments in R&D in increasing companies’ innovation capabilities. These factors contribute to increasing a company’s propensity for innovation and increasing its likelihood to become a serial innovator. A qualified and educated workforce is known to have the skills and knowledge required to actively engage in innovative activities, thus positioning companies as serial innovators.

The effect of output additionality of public funding support on firm innovation. Evidence from firms of different sizes

AbstractThe article aims to study the effect of output additionality of public innovation funding on firm innovation, measured as economic returns of innovation, across firms of different sizes. A panel sample consisting of 4125 Spanish firms observed during years 2009–2014 has been analysed, using a treatment model. Robustness tests have also been used. The findings show the effects of output additionality of innovation funding support for small, medium and large firms, with a greater effect on large firms and a lower effect on medium firms. However, there has a weak effect for very large firms, which do not benefit in terms of output additionality. Since it is relatively easy for large firms to benefit from public support for innovation, some of the resources allocated to them should be passed on to small and medium firms. Medium firms seem to be less inclined to benefit from economies of scales than large firms and may be less affected by public innovation policy given the priority for small firms' development. Small and medium enterprises can benefit further from well‐designed targeting programmes, with a prevalence of demand‐side support measures compared to the supply‐side measures.

Public Support for Innovation: Changes in Turnover of Granted Companies

Abstract Background: Innovation policy supports innovation in companies, as it is crucial for economic, social and environmental development. Objectives: The research aims to verify whether companies that have received public support for innovation are experiencing turnover growth. Methods/Approach: The research is carried out on the example of the Czech Innovation Programme, and the analysis included 276 projects in the manufacturing industry. The study compares the turnover of enterprises one year before receiving the aid and two years after the granting. The analysis is performed regarding the size of companies, industries and regions. Results: When the companies are assessed at the median level, the largest turnover growth was found in the category of small enterprises. Regarding industry, the largest increase was recorded in NACE sections 22, 27, 26, 29 and 30. The lowest increase in turnover was recorded for enterprises in sections 21, 23, 24 and 28. Differences in turnover growth were also observed across regions. Conclusions: Providing support for innovation contributes to the growth of turnover. A larger share of public aid should be allocated to the category of small and medium-sized enterprises and knowledge-intensive industries.

Potential for the use of large unstructured data resources by public innovation support institutions

Effective programming of research and development (R&D) support, adjusted to the actual potential of beneficiaries, requires the use of modern analytical tools. An efficient R&D support system requires up-to-date data on technological trends, ongoing (and planning) research, market needs and developing innovation. The most popular programming methods were based on the analysis of data with a 4 to 5-year time delay until recently. Having described the method of refining information from unstructured data, we explore how to make it possible not only to solve the issue of up-to-date data but to identify of the latest trends in R&D activities.The analytical tools we describe were already fully functional in 2018 and are constantly being improved. The article presents the potential of one tool that can be applied in public support institutions. Methods of identifying and diagnosing technology trends are presented within the case study of the electric car technology trend. The presented case study shows the effectiveness of the method we developed for identifying and diagnosing areas requiring support from public funds. Public institutions, including public institutions supporting R&D and innovation processes, can apply tools that allow an increase in the quality of public support programmes offered, but also beneficial for the quality of strategic resources management within the institution itself. The comparison of the predictions made by the described tools with the classifications made by experts, the former are more accurate and precise. Moreover, the results of the analyses performed by the presented model are not influenced by distorting factors—fads, trends, political pressures, or processes with an unidentified, non-substantive background. It should be emphasized that the accuracy of the whole model is 0.84. The described tools and methods are already directly applicable in many areas related to the support of R&D activity worldwide. The article presents a solution that effectively enables the management of more precise programmes supporting innovative activities used for the first time in Poland. It is also one of the first uses of these methods by public administration in the world. Our approach not only strengthens improved adjustment of the support offered for R&D activity, but also makes it possible to apply and improve management methods in public institutions.

Impact of Public Support for Innovation on Company Performance: Review and Meta-Analysis

In recent years, there has been a significant shift in public policies directed to firms, with several governments launching public measures to support innovation. To promote firms’ innovation, governments can implement incentives such as subsidizing companies, inducing them to undertake those investments. Hence, the aim of this study is to review the results of a set of studies published on the evaluation of public support to firms’ innovation. To achieve this goal, we conduct a literature review that combines bibliometric analysis, network, qualitative analysis (con-tent review), and quantitative analysis through meta-regression. The analysis was performed using the VOSviewer and Stata software and the results of the meta-regression (regression with Logit model) suggest that there are no characteristics of studies on this topic that affect the results obtained. It was verified that, in the set of articles analyzed, there is strong evidence that public support for innovation leads to favorable results for the company’s performance. The main trends in the topics addressed were also identified and analyzed and, in addition to financial support for innovation, support for small and medium-sized companies, support for the development of the high-tech industry, and open and collaborative innovation stand out.

The impacts of public support for innovation on firm productivity and on private investment in R&D in manufacturing and services in Colombia

ABSTRACT This research analyzes the effectiveness of public support for innovation in the form of matching grants on productivity and on R&D intensity of manufacturing and service firms in Colombia, paying special attention to the impact of those funds aimed specifically at strengthening the innovation system. Results show that firms that received public funds for innovation have obtained significant improvements in productivity and have made greater efforts in R&D activities (compared to firms that did not receive matching grants). This suggests that public funds devoted to strengthening linkages among the different actors in the innovation system and to providing financial incentives to invest in R&D activities are effective mechanisms in the development of absorptive capacities, ultimately affecting both the learning process and the competitiveness of firms. These findings are particularly relevant for the design of public policies in developing countries, where innovation is a necessary condition for catching-up and economic upgrading.

Playing the innovation subsidy game: Experience, clusters, consultancy, and networking in regional innovation support

Government support to promote firm-level innovation is seen as a crucial factor for economic growth. This support is frequently channeled through firm-level subsidies. Despite their relevance within the policy portfolio, there is an open academic debate on whether subsidies are effective for innovation. This is by no means related to a potential inadequacy of subsidies, but because the mechanisms of assignment may be unsatisfactory. We argue that this may be the case when subsidies are awarded to larger firms with a solid international and innovative trajectory or to those that know how toplay the system,” rather than to the most deserving firms and projects. To test whether this is the case, we use data from 17,866 applicants for innovation subsidies managed by the Valencian Institute of Competitiveness. We find that firms with specific knowledge accrued through previous submissions, public funding and grant consultancy or cluster location, are the main beneficiaries of public innovation support, generally at the expense of more promising candidates that lack the know-how to navigate a complex and often flawed process. This inertia gets policy-makers stuck in a sub-optimal assignment system that should be deeply reconsidered.

Access to Government Support for Innovation — Empirical Evidence From the Ruhr Area in Germany

Governments all over the world support innovation activities in private companies with several different programs. Typical measures are R&D subsidies, consulting services, incubator facilities, opportunities for networking, and subsidized loans. From an economic perspective, public support for innovations may help to compensate for market failure. But government support encounters the risk of being neither effective nor efficient. Furthermore, the ability of a company to successfully apply for public innovation support programs depends on the amount of administrative resources it already is equipped with, i.e. its size and its existing relationships with research institutions. In this paper, we look at public support for private companies in one specific German region, the Ruhr area. We use a sample of 74 companies, all of which engage in R&D activities and have already filed patents. Our findings show that firms need a minimum company size to be able to successfully apply for public innovation support. Furthermore, we show that an existing cooperation with research institutions makes access to public support measures easier. We also find that public innovation support indeed improves the patent position of companies.

Effectiveness of Public Support for Business Innovation from EU Funds: Case Study in Slovakia

AbstractEffective public support of innovations, research and development represents one of the priorities of the European Union (EU). The aim of this paper was to examine the effectiveness of one such public programme – public support for business innovation from EU funds in Slovakia – by using selected quasi-experimental design methods on the example of the Operational Programme Competitiveness and Economic Growth for the programming period 2007 – 2013. The value added of this paper is the fact that we use the method proposed and used by the European Commission and Slovak national authorities. The “difference-in-differences” method is used to compare the changes in value added of supported firms before and after the intervention in comparison to firms that did not receive support. The results suggest that the public support from selected calls of the evaluated operational programme was effective and delivered improvements not only in the field of innovativeness and competitiveness, but also in the area of employment. The evaluated call was much more effective compared to other calls of the programme evaluated by other authors. The responses from the management body suggest that the core success factors were the contents of the call and timing.

Publisher Correction: Boost public support for food systems innovation

Publisher Correction: Boost public support for food systems innovation

Boost public support for food systems innovation.

Publicly funded technological innovations, strategic policy implementation and private sector upscaling have facilitated greater demand and lower costs for certain foods in the past. Can lessons be learned for transitioning towards healthy, sustainable diets?

Full Issue Download Vol. 13 No. 1 2021 The Importance of the Measurement Infrastructure in Economic Recovery from the COVID-19 Pandemic Richard J. C. Brown , Fiona Auty, Eugenio Renedo, Mike King NCSLI Measure | Vol. 13 No. 1 (2021) | doi.org/10.51843/measure.13.1.1 Publisher NCSL International | Published February 2021 | Pages 18-21 Abstract: This paper describes the many, evidenced-based benefits

Facilitating the uptake of established methodologies for risk-based decision-making in product conformity assessment taking into account measurement uncertainty by providing dedicated software is the aim of the European project EMPIR CASoft(2018–2020), involving the National Measurement Institutes from France, Sweden and the UK, and industrial partner Trescal (FR) as primary supporter. The freely available software helps end-users perform the required risk calculations in accordance with current practice and regulations and extends that current practice to include bivariate cases. The software is also aimed at supporting testing and calibration laboratories in the application of the latest version of the ISO/IEC 17025:2017 standard, which requires that“…the laboratory shall document the decision rule employed, taking into account the level of risk […] associated with the decision rule and apply the decision rule.” Initial experiences following launch of the new software in Spring 2020 are reported.

On the structural barriers to public innovation support for SMEs and the opportunity COVID-19 can offer to overcome these barriers

COVID-19 pandemic-related direct public support mechanisms have received more attention than previously and budgets for SME subsidies have skyrocketed around the globe. Currently, most support measures focus on short-term liquidity needs. However, policy makers have already started thinking about which role subsidies should play in the renewal of the economic structure once the pandemic dust has settled. The pandemic offers a good opportunity to restructure a company support system taking into account the structural barriers that innovation support systems have been subject to over the last decade. The aim of the analysis in this paper is threefold: (1) to map the barriers to innovation support, (2) to offer policy makers and SME support agencies a set of solutions to overcome these barriers and (3) to re-interpret these results against the background of the COVID-19 pandemic that started to unravel shortly after finalising the set of research interviews.

Network additionality and policy mix of regional and national public support for innovation

ABSTRACT Applying a multilevel treatment model to a sample of Spanish manufacturing firms, we evaluate the joint impact of regional and national funding on firms’ cooperative relationships. A joint provision of public support from different administrative levels is termed a multilevel innovation policy mix. Because of heterogeneity in innovation behaviour and performance, we separately analyse small and medium-sized enterprises (SMEs) and large firms. Our empirical findings show heterogenous results with respect to both firm size and a type of cooperative partners. For SMEs, a multilevel policy mix has a synergistic effect on cooperation with customers. For other cooperative partners, the joint effectiveness depends on the comparison group. Namely, both sources jointly are more effective than regional support in isolation in promoting cooperation with suppliers and universities. For those SMEs that are funded from central government, a multilevel governance is effective in case of cooperation with government agencies and consultants. With regards to large firms, we find a limited evidence on complementarity between regional and national support. Namely, the policy mix is effective when large firms cooperate with other firms, specifically with customers and competitors. In contrast, empirical findings suggest no complementary effects for cooperation with knowledge providers.

Public support for innovation: A systematic review of the literature and implications for open innovation

Although public support for innovation is one of the main contemporary topics in innovation management and even economic and industrial development, there are no recent studies that have consolidated and analyzed the publications on the topic, especially from the perspective of open innovation (OI). Therefore, the objective of this article is to contribute to the field by assessing what types of public practices for innovation comprise the term "public support for innovation'' and its relationship with OI. To achieve these objectives, we conducted a systematic review and qualitative analysis of 121 articles. Our results reveal that (i) the use of the term "public support for innovation'' is emerging in innovation management and innovation policies; (ii) there are differences in research approaches that focus on "innovation policy'' and "public support for innovation''; and (iii) the OI is used more than management theories to analyze public support for innovation. Furthermore, our results indicate that public support for innovation can be analyzed from four dimensions: (i) financial support for R&D activities; (ii) development through innovation; (iii) support for sectorial programs; and (iv) university–industry–government collaboration (triple helix).

Mapping variety of innovation strategies sponsored by the policy-mix: an analytical framework and an empirical exploration

Several studies claim that to address the current economic and social challenges that face societies requires a range of public instruments promoting a variety of new technologies, markets and institutions. However, these studies say little about how to monitor the degree to which the policy-mix fosters variety in the system. This paper attempts to contribute to on-going efforts in the innovation policy field by developing such an analytical framework. Taking a microeconomic approach, this framework proposes that the degree to which the policy mix promotes variety generation in the system can be understood by examining the innovation strategies of recipients of public innovation support. Specifically, the framework proposes to examine three different aspects of firms’ strategies and characteristics, which the literature has shown as central to their innovation behavior and outcomes: a) the innovation search path; b) the forms of governance for technological sourcing; and c) the learning loci. We provide an example of how this framework can be fruitfully applied.

Continuous results-driven innovation management program

PurposeThe purpose of this paper is to present the innovation management program (IMP) (FAZ Program) and analyze its results according to the public policy goals that support it (Pró-Inova) suggesting improvements.Design/methodology/approachIntensive-direct-observation method in 43 companies; systematic data gathering and analysis (172 meeting documents); and innovation maturity diagnostics in 30 companies between August 2013 and May 2016.FindingsThe FAZ Program success rate according to the Pró-Inova goals achieved 81 percent. The percentage of completion of FAZ activities decreases during its implementation from 100 percent (strategic module) to 74 percent (management module) and ending at 46 percent (project module). The maturity for innovation of these committees/teams is decisive for those percentages. Companies whose maturity for innovation of the strategic committee and the organizational team are above average or excellent have, respectively, 1.8 and 1.7 times greater probability of implementing the program successfully.Research limitations/implicationsThe FAZ Program represents only 4 percent of the programs supported by Pró-Inova. The innovative products, processes and businesses produced by the FAZ Program implementation are not measured. These innovations usually happen several years after an innovative management models implementation.Practical implicationsThe maturity for innovation diagnosis is useful both to evaluate the company’s innovation capacity and to predict its chances of implementing the program successfully. Adjusting the structure of the model (e.g. PDCA cycle for the organizational module) and improving the program’s implementation (e.g. ensure management module resources and maturity for innovation capacity) can increase the program’s success rate.Originality/valuePrevious research works on IMPs supported by Pro-Inova focus on describing their methodology or benefits. The results allow answering what and how one of these programs offers in a return to the public innovation support received.

Innovation Ecosystems in the EU: Policy Evolution and Horizon Europe Proposal Case Study (the Actors’ Perspective)

At the European Union (EU) level, innovation matter is acknowledged as crucial for progress and sustainability. Related policy action is materialized through Horizon Europe, the 9th Framework Program (FP) for research and development (R&D). The present 8th FP, Horizon 2020, is already considered the biggest public innovation support program in the world. Accordingly, the 9th FP is a cornerstone of innovation ecosystems configuration in the EU and, thus, should be carefully evaluated. In this paper, the analysis of the forthcoming FP proposal is made and a previously developed framework for the structural advancement assessment of innovation ecosystems was applied. The Actor’s viewpoint from the “innovation helix” is especially advantageous for a thorough evaluation. In conclusion, the Horizon Europe proposal does take into account the knowledge triangle or triple helix (Academia, Government, Industry) with “tacit”, however not very explicit, commitment towards complementing Society and Natural Environment dimensions. The process perspective of innovation is highlighted, particularly in terms of overcoming the “valley of death”; nevertheless, private innovation financing levels are still a matter of concern. If the sustainability is to be achieved, consistently allowing for socioecological transformation, authors recommend the orchestration of efforts, especially in the involvement of Society and implication in innovation, as well as in the Natural Environment orientation.