When do small and medium-sized enterprises (SMEs) use government support programs for technological innovation?

This study examines the conditions under which small and medium-sized enterprises (SMEs) decide to use government support programs for technological innovation. Using firm-level data from the 2018 Korean Innovation Survey (KIS), the analysis focuses on 1,285 manufacturing SMEs. The results show that SMEs are more likely to use government support programs when competency-related barriers hinder innovation. Market-related barriers, including fierce competition and uncertain demand, also increase the likelihood of program participation. In contrast, financial constraints were negatively associated with the use of government support programs. Regarding R&D activities, SMEs conducting internal, joint, or external R&D were more inclined to use government support programs, highlighting the complementary relationship between innovation efforts and institutional support. These findings provide policy implications for designing differentiated support policies that strengthen competencies, encourage collaborative R&D, and mitigate market uncertainty. This study contributes to the understanding of SMEs' innovation behaviour and serves as a foundation for further research on innovation strategy and public policy.