Title: Public subsidies and firm innovation, a mediating role of external collaboration: the relation between diverse natures of innovation activities

Authors: Kiman Kim; Sang Ok Choi; Sooyeon Lee

Addresses: Division of Policy Research, Green Technology Center, Jung-gu, Seoul, 04554, South Korea ' Program in Science and Technology Studies, Department of Public Administration, Korea University, Seongbuk-gu, Seoul, 02841, South Korea ' Division of Innovation Planning and Institutional Research, Yuhan University, Bucheon, Gyeonggi-do, 14780, South Korea

Abstract: This paper investigates the impact of a public support on private innovation outcome, and whether this relation is mediated by a firm collaboration. Various types of a partnership and innovation performance are considered to clarify a heterogeneous policy effect. Empirical results based on merged two waves of Korean innovation survey indicate that subsidies positively associate only with a marketable performance; this relation is likely to be mediated by a certain type of the firm collaboration. However, the magnitude of the indirect effect is not sufficient to be statistically confirmed. This implicates that a role of public subsidies is to lead firms only to be more innovative. The innovation outcome can be promoted by a firm collaboration which is, however, not inevitably induced by a public support.

Keywords: government support; subsidies; policy impact; innovation; firm external collaboration; innovation outcome; nature of innovation; mediation effect; Baron and Kenny; innovation survey.

DOI: 10.1504/IJTM.2020.112151

International Journal of Technology Management, 2020 Vol.84 No.1/2, pp.86 - 109

Accepted: 08 Aug 2020
Published online: 04 Jan 2021 *

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