February 18, 2022 - 3:00 pm
February 18, 2022 - 4:00 pm
AddressH.001, 1A Hoang Dieu, Phu Nhuan View map
Government support for SMEs innovations: The case of government financial support in Vietnam
Student: Dương Kim Thanh, VNP24
Supervisor: Dr. Vũ Thị Hồng Nhung
Innovation is an important context in the modern economic process, and it refers to the acquisition and the implementation of new idea into new product or service, leading to the realization of new profit and economic wealth. In the SMEs context, the role of innovation becomes more important. This study is developed with the objective of exploring the government support towards the SMEs’ innovation in Vietnam. There are four research models to be developed with dependent variables are NPR – whether the firms delivered new products to the market, PIM – whether the firms conducted any improvement for its current products, and TEC – whether the firms adopted new technologies into its production and business process for its current products. Also, the author calculates INV as sum of NPR, PIM and TEC. Using Poisson regression with random and fixed effect, it is identified that government support has either positive or negative impact on INV. The positive impact is recorded for Poisson regression with fixed effect while the negative impact is found for Poisson regression with random effect. The author also runs the Probit regression and obtained result shows that government support has positive and significant impact on NPR but it has negative and significant effect on PIM and TEC. The author also calculates the Propensity score and conducts the Propensity score matching and found that government support does not promote innovation. The policy implication is that the current supporting policies is not effective and inefficient and they should be re-designed.
Keywords: SMEs, innovation, government support, government ownership, firm size, firm age, firm leverage