The Influence of Public Support for Innovations on the Economic Performance of Enterprises


  • Viktorie Klímová Masaryk University, Faculty of Economics and Administration
  • Vladimir Žítek Masaryk University, Faculty of Economics and Administration
  • Tereza Lelková Masaryk University, Faculty of Economics and Administration



innovation, enterprise, public support, business performance, Czech Republic


The paper aims to assess how public support for innovation activities influences the economic performance of Czech companies. In the framework of the research, attention was paid to more than 600 Czech companies that received support to start their innovation activities. The analysis was performed on the case of the Innovation Program, which was co-financed by the European Regional Development Fund. The Innovation Program is the largest Czech program for innovation support and mainly supports the launching of technological innovations in practice. The detailed analysis included 214 defined enterprises, for which all necessary information was available. The research analyzed the turnover of companies before obtaining support and after the implementation of the project. The research results show how the grant affects different size categories of enterprises and how the effect of the aid varies across sectors of the national economy.


API – Business and Innovation Agency (2021), “General Information on OP EIC”, available at: (20 April 2021)

Arrow, K. J. (1962), “Economic welfare and the allocations of resources of invention”, in The Rate and Direction of Inventive Activity: Economic and Social Factors, Princeton University Press, Princeton, pp. 609-626.

BEIS (2017), “The impact of public support for innovation on firm outcomes”, BEIS Research Paper, No. 3. BEIS, Department for Business, Energy & Industrial Strategy, London, March 2017.

Bisnode (2021), “MagnusWeb”, available at: (15 January 2021)

Bleda, M., del Río, P. (2013), “The market failure and the systemic failure rationales in technological innovation systems”, Research Policy, Vol. 42 No. 5, pp. 1039-1052.

Coccia, M. (2017), “Sources of technological innovation: Radical and incremental innovation problem-driven to support competitive advantage of firms”, Technology Analysis, Vol. 29 No. 9, pp. 1048-1061.

Crespi, G., Giuliodori, D., Giuliodori, R., Rodriguez, A. (2016), “The effectiveness of tax incentives for R&D+i in developing countries: The case of Argentina”, Research Policy, Vol. 45 No. 10, pp. 2023-2035.

Curran, J., Storey, D. J. (2002), “Small business policy in the United Kingdom: the inheritance of the Small Business Service and implications for its future effectiveness”, Environment and Planning C: Government and Policy, Vol. 20, pp. 163-177.

Dodgson, M., Hughes, A., Foster, J., Metcalfe, S. (2011), “Systems thinking, market failure, and the development of innovation policy: The case of Australia”, Research Policy, Vol. 40 No. 9, pp. 1145-1156.

Douglas, D., Radicic, D. (2020), “Network additionality and policy mix of regional and national public support for innovation”, Economics of Innovation and New Technology, DOI: 10.1080/10438599.2020.1789277.

Eurostat (2008), “NACE Rev. 2 - Statistical classification of economic activities”, available at: (20 April 2021)

Galbraith, B., McAdam, R., Woods, J., McGowan, T. (2017), “Putting Policy into Practice: An Exploratory Study of SME Innovation Support in a Peripheral UK Region”, Entrepreneurship and Regional Development, Vol. 29 No. 7-8, pp. 668-691.

Grillo, F., Landabaso, M. (2011), “Merits, problems and paradoxes of regional innovation policies”, Local economy, Vol. 26 No. 6-7, pp. 544-561.

Klímová, V., Winklerová, L. (2017), “Bariéry pro rozvoj inovací v regionech (Barriers to innovation development in regions)“, in Klímová, V., Žítek, V. (Eds.), 20th International Colloquium on Regional Sciences, Masaryk University, Brno, Czech Republic, pp. 246-254.

Lewczuk, A., Lewkowicz, J. (2020), “Incentives for Private Innovations - Is Public Support Necessary?”, Argumenta Oeconomica, Vol. 45 No. 1, pp. 105-139.

Merito, M., Giannangeli, S., Bonaccorsi, A. (2010), “Do incentives to industrial R&D enhance research productivity and firm growth? Evidence from the Italian case”, International Journal of Technology Management, Vol. 49 No.1/2/3, pp. 25-48.

Mina, A., Di Minin, A., Martelli, I., Testa, G., Santoleri, P. (2021), “Public funding of innovation: Exploring applications and allocations of the European SME Instrument”, Research Policy, Vol. 50 No. 1.

Ministry of Regional Development CZ (2021), “ European Funds Portal in the Czech Republic”, available at: (15 January 2021)

Montmartin, B. A., Herrera, M. (2015), “Internal and external effects of R&D subsidies and fiscal incentives: Empirical evidence using spatial dynamic panel models”, Research Policy, Vol. 44 No. 5, pp. 1065-1079.

Neméthová, V., Širanová, M., Šipikal, M. (2019), “Public support for firms in lagging regions - evaluation of innovation subsidy in Slovakia”, Science & Public Policy, Vol. 46 No. 2, pp. 173-183.

OECD (2005), Oslo manual. The Measurement of Scientific and Technological Activities, Proposed Guidelines for Collecting and Interpreting Technological Innovation Data, 3rd edition, Paris, OECD.

Segarra-Blasco, A., Garcia-Quevedo, J., Teruel-Carrizosa, M. (2008), “Barriers to innovation and public policy in Catalonia”, International Entrepreneurship and Management Journal, Vol. 4 No. 4, pp. 431-451.

Woolthuis, R. K., Lankhuizen, M., Gilsing, V. (2005), “A system failure framework for innovation policy design”, Technovation, Vol. 25 No. 6, pp. 609-619.

Zakić, N., Popović, J., Miškić, M. (2020), “The Linkages Between Investments in Innovation and Business Performance in Serbia”, Management: Journal of Sustainable Business and Management Solutions in Emerging Economies, Vol. 25 No. 3, pp. 1-11.




How to Cite

Klímová, V., Žítek, V., & Lelková, T. (2022). The Influence of Public Support for Innovations on the Economic Performance of Enterprises. ENTRENOVA - ENTerprise REsearch InNOVAtion, 7(1), 315–323.



Economic Development, Innovation, Technological Change, and Growth