Public funding of innovation: Exploring applications and allocations of the European SME Instrument
Financial constraints can severely limit the development of small and medium size enterprises (SMEs) and are
very likely to affect innovative firms. In order to lower the barriers to firm growth, in 2014 the European
Commission introduced the SME Instrument with the specific aim to support businesses with high-growth potential
in need of external finance. By exploiting the availability of information not only on grant awards but also
on applications, this is the first study that examines which types of firms apply to the scheme and which ones are
selected for the two main rounds of funding. The evidence suggests that the scheme is successful at attracting
SMEs with high-growth potential, and that – in line with signalling theory – patenting and prior venture capital
funding are strong predictors of awards.
MINA Andrea;
DI MININ Alberto;
MARTELLI Irene;
TESTA Giuseppina;
SANTOLERI Pietro;
2022-06-09
ELSEVIER SCIENCE BV
JRC123297
0048-7333 (online),
https://www.sciencedirect.com/science/article/pii/S0048733320302067?via%3Dihub,
https://publications.jrc.ec.europa.eu/repository/handle/JRC123297,
10.1016/j.respol.2020.104131 (online),
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