Measuring Effectiveness of Support Policies to Promote Innovation at SMEs by Local Governments: Market Orientation and Informational Resources

Abstract

This study is an empirical study on the measurement of the effectiveness of support policies towards new business by small and medium enterprises, focusing on municipalities' support policies for SMEs. From the pilot survey for SMEs certified in the Osaka City “Osaka Top Runner Project," firstly, this study clarifies that not only direct support, but also indirect support is important for promoting new business of SMEs. Secondly, we propose a theoretical framework to capture the effects of support policies by market orientation and informational resources on two axes. Finally, we construct one causal hypothesis about the measurement of the effectiveness of support policies to promote innovation at SMEs by local governments.