The Enrollment in an R&D Subsidy Program for SMEs: Evidence from Southwest Germany

Part of the International Studies in Entrepreneurship book series (ISEN, volume 28)


The literature on R&D subsidy programs has mainly focused on final R&D outcomes and has largely ignored the processes that operate within subsidy programs. The implementation of programs and allocation of funds might have a profound impact on the final economic outcome though.

We discuss the targeting process of R&D subsidy programs and analyze empirically the Enrolment in a particular R&D promotion program. Companies applying for the program we analyze often seem not to have complete knowledge on their projects and project partners when applying for funds. About one out of five companies does not conduct the project it was granted money for. Dropouts are not random; companies that were planning to cooperate with “high quality” R&D institutions in the scope of the project and those from core cities are more likely not to conduct their projects. In line with our expectations we are also able to show that companies which have cooperated with R&D institutions before are more likely to conduct their projects than those without cooperation experience.


Support Program Private Firm Promotion Program Small Company Allocation Process 
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Copyright information

© Springer Science+Business Media New York 2012

Authors and Affiliations

  1. 1.Research fellow Center for SME Research, research fellow chair for SME Research and Entrepreneurship, Institut für MittelstandsforschungUniversity of MannheimMannheimGermany
  2. 2.Senior research fellow Center for SME research, Institut für MittelstandsforschungUniversity of MannheimMannheimGermany
  3. 3.Center for SME Research University of Mannheim, chair for SME Research and Entrepreneurship, Institut für MittelstandsforschungUniversity of MannheimMannheimGermany

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