Government R&D Subsidies and the Dual Performance of Marginal Firms: Divergent Effects on Financial and Technological Outcomes in South Korea

Key Points

• Positive effects of R&D subsidies on innovation performance were observed, while financial performance showed no significant change.
• Over 882 marginal firms in South Korea were studied between 2012 and 2018, demonstrating varied influences of subsidies.
• Probit and Poisson regression models were utilized to analyze the impacts of public support on firms' outcomes.
• Findings highlight the necessity for tailored innovation policies to better support productive marginal firms.