Public Support for Innovation: Changes in Turnover of Granted Companies

Abstract

Background: Innovation policy supports innovation in companies, as it is crucial for economic, social and environmental development. Objectives: The research aims to verify whether companies that have received public support for innovation are experiencing turnover growth. Methods/Approach: The research is carried out on the example of the Czech Innovation Programme, and the analysis included 276 projects in the manufacturing industry. The study compares the turnover of enterprises one year before receiving the aid and two years after the granting. The analysis is performed regarding the size of companies, industries and regions. Results: When the companies are assessed at the median level, the largest turnover growth was found in the category of small enterprises. Regarding industry, the largest increase was recorded in NACE sections 22, 27, 26, 29 and 30. The lowest increase in turnover was recorded for enterprises in sections 21, 23, 24 and 28. Differences in turnover growth were also observed across regions. Conclusions: Providing support for innovation contributes to the growth of turnover. A larger share of public aid should be allocated to the category of small and medium-sized enterprises and knowledge-intensive industries.