Positive impact of R&D subsidies on small firms: report
SEOUL--- Government research and development (R&D) subsidies provided to small and medium enterprises (SMEs) have had a positive impact on their innovation and competitiveness, a report said Monday.
The report by the state-run Science and Technology Policy Institute (STEPI) showed that SMEs which received R&D support from 2011 through 2015 showed positive results both in terms of sales and job creation.
"The results show that the government subsidies play a huge role in getting SMEs to hire more people," the report said.
SMEs have traditionally spent little on R&D, prompting the government to prepare a framework targeting support for SME's R&D activities in 1998, STEPI said. A series of R&D programs have been introduced over the past 20 years with the accumulated expenditure at more than 30 trillion won (US$26.49 billion).
Thanks to continuous support by subsequent government administrations' SME R&D-related expenditure, a total of 235 small companies have received over 12.73 trillion won over the past five years, the institute said.
Source: Yonhap News Agency