An Empirical Analysis of the Effects of R&D Support Methods on SME Performance: Evidence from the Korean Government R&D Subsidies Provided to Overlap Beneficiaries

Seungku Ahn, Kwon-Sik Kim, Kwang-Hoon Lee

Abstract

The research goals of this paper are to examine the overlapping government R&D support provided to small- and medium-sized enterprises (SMEs) in Korea, analyze its effects on the financial and technological performance of beneficiary companies, and identify implications for optimizing the support system. The study aims to investigate the relationship between the number and status of government R&D benefits and the sales increase of SMEs, as well as the impact on their technological performance measured by the number of domestic and foreign patents. Additionally, the paper seeks to propose measures for preventing overlapping support and streamlining the R&D support systems for SMEs in Korea. The analysis results revealed that the number and status of government R&D benefits had a statistically significant positive (+) effect on the sales increase of a company, while the number of overlapping benefits and beneficiaries had a statistically significant positive (+) effect on the number of domestic and foreign patents of the company. The scientific novelty of this paper lies in its empirical analysis of the overlapping government R&D support provided to SMEs in Korea, shedding light on its effects on financial and technological performance. The study provides new insights into the positive relationship between the number and status of government R&D benefits and the sales increase in beneficiary companies. Additionally, it contributes to the literature by examining the impact of overlapping support on the technological performance of SMEs, measured by the number of domestic and foreign patents held by the companies.

 

Keywords: R&D subsidies, overlapping beneficiaries, small- and medium-sized enterprises.

 

DOI: https://doi.org/10.55463/hkjss.issn.1021-3619.61.33


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