Employment growth from public support of innovation in small firms

UNCG Author/Contributor (non-UNCG co-authors, if there are any, appear on document)
Albert N. Link, Professor (Creator)
The University of North Carolina at Greensboro (UNCG )
Web Site: http://library.uncg.edu/

Abstract: Herein, we investigate the impacts of the US publicly funded Small Business Innovation Research (SBIR) program's funding on the overall employment growth of SBIR award-recipient firms. This paper is motivated by the US Congress’ continued emphasis on employment growth during its deliberations on the reauthorization of the SBIR program. We set forth a model of employment growth; the model offers a framework through which we can compare a firm's actual level of employment after receipt of an SBIR award and completion of the research project to the level of employment predicted by the firm's characteristics prior to the award. Using data collected by the National Research Council within the National Academies, we estimate our model, and we conclude that, on average, the overall employment effects associated with the SBIR program are large absolutely and relative to dollars of funding, but these effects are, in general, not statistically significant.

Additional Information

Language: English
Date: 2012
employment growth, entrepreneurship, innovation, technology, small businesses, economics

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