Title: The impact of R&D incentives in the competitiveness of Portuguese SMEs

Authors: Liliana M. Abrantes; Elisabeth T. Pereira; Anabela Botelho

Addresses: Department of Economics, Management, Industrial Engineering and Tourism (DEGEIT), Campus Universitário de Santiago, University of Aveiro, 3810-193 Aveiro, Portugal ' Research Unit on Governance, Competitiveness and Public Policies (GOVCOPP), Department of Economics, Management, Industrial Engineering and Tourism (DEGEIT), Campus Universitário de Santiago, University of Aveiro, 3810-193 Aveiro, Portugal ' Research Unit on Governance, Competitiveness and Public Policies (GOVCOPP), Department of Economics, Management, Industrial Engineering and Tourism (DEGEIT), Campus Universitário de Santiago, University of Aveiro, 3810-193 Aveiro, Portugal

Abstract: The aim of the present study is to evaluate whether the European incentives received by SMEs to invest in R&D projects make these companies more competitive. With this purpose, was collected data from 151 SMEs, which received subsidies for R&D, from the COMPETE - operational program competitiveness factors, during the period from 2007 to 2013. According to the economic literature, the return on R&D investment made by companies is not immediate, and the results on the competitiveness may not be observed in the early years. Using an econometric methodology of panel data, this study concludes that the incentives reflect a positive effect on SMEs' competitiveness only in the third year after the R&D investment.

Keywords: R&D incentives; subsidies; competitiveness; SMEs; innovation; panel data; Portugal; European incentives.

DOI: 10.1504/IJBIR.2020.105919

International Journal of Business Innovation and Research, 2020 Vol.21 No.3, pp.336 - 355

Received: 16 Jan 2018
Accepted: 30 Jul 2018
Published online: 18 Mar 2020 *

Full-text access for editors Full-text access for subscribers Purchase this article Comment on this article