Evaluation of the promotion of R and D activities in small and medium-sized enterprises

Summary of effects of about ten years of support programmes for innovation in SMEs (1979-1987) on the basis of a broad empirical evaluation. Results include: public support has primarily helped dynamic, succesful companies; it has strengthened positive attitudes towards innovation, not evoked them; innovating companies show a better performance than non-innovating companies, thus it follows that the underlying assumption of the public support seems to be justified. The end of this long-term programme was caused by budget constraints and difficulties in the management of the programme, therefore, the question is discussed why and how a programme of subsidies or tax credits could be designed.