Effect of government R&D grants on SMEs’ performance in Korea: Synthetic difference-in-difference approach

• 발행기관: 서울대학교 경제연구소
• 저자명: Hochul Shin Hongkee Kim
• 간행물 정보: 『Seoul Journal of Economics』Volume 38 No.4, 381~403쪽, 전체 23쪽
• 주제분류: 경제경영 > 경제학
• 파일형태: PDF
• 발행일자: 2025.11.30

국문 초록

This study analyzes the effect of government R&D grants on the performance of small and medium-sized enterprises using Korean firm-level data by employing a synthetic difference-in-differences (DiD) approach. Standard DiD models produce unreliable results due to the violation of the parallel trends assumption between the treatment and control groups. By contrast, the synthetic DiD model suggests that the parallel trends assumption is satisfied, and the estimated effect of government R&D grants on firms’ sales is significant and positive. The grants also significantly increase employment and sales per employee, although they do not have a measurable impact on profitability.

목차

I. Introduction

II. Overview of the current Korean SME R&D

III. Data and estimation method

IV. Estimation results

V. Conclusion

Reference

키워드

R&D SMEs grants sales synthetic difference in difference