Exploring SME's behavioural changes resulting from innovation policy: the effect of receiving a subsidy on intrapreneurship

Kars Mennens*, Wilko Letterie, Anita Van Gils, Gaby Odekerken-Schroder

*Corresponding author for this work

Research output: Contribution to journalArticleAcademicpeer-review

Abstract

Intrapreneurship is critical for small to medium-sized enterprises (SMEs), in that it enhances innovation and organizational performance. This study details how intrapreneurship develops in subsidized relative to unsubsidized SMEs. We build on behavioural additionality research, as these studies examine changes in firm behaviour that occur after the firm receives public support. Prior studies focus on the effect on external collaboration, but subsidies also can lead to organizational learning and upgraded competencies, implying the potential for changes to organizational routines. Our test of the behavioural additionality effect relies on an original longitudinal data set involving manufacturing SMEs in the Dutch province of Limburg. The data analysis combines propensity score matching with a difference-in-difference approach, which reveals a significantly higher increase in one aspect of intrapreneurship, namely strategic renewal behaviour, among SMEs that receive an innovation subsidy. The findings advance understanding of intrapreneurship and behavioural additionality effects and provide policy makers with new evidence of the added value of subsidy programmes.

Original languageEnglish
Pages (from-to)935-954
Number of pages20
JournalEntrepreneurship and Regional Development
Volume34
Issue number9-10
DOIs
Publication statusPublished - 2022

Keywords

  • Innovation subsidy
  • innovation policy
  • intrapreneurship
  • behavioural additionality
  • average treatment effect
  • SME
  • RESEARCH-AND-DEVELOPMENT
  • FINITE-SAMPLE PROPERTIES
  • ENTREPRENEURIAL ORIENTATION
  • PROPENSITY-SCORE
  • PUBLIC SUPPORT
  • CORPORATE ENTREPRENEURSHIP
  • DEVELOPMENT COLLABORATION
  • DEVELOPMENT PROGRAMS
  • EMPIRICAL-EVIDENCE
  • ADDITIONALITY

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