Pubic funding for innovation: The importance of individual resources of the entrepreneur and the relational resources of the firm

The main purpose of our quantitative study is to analyze the importance of individual resources of the entrepreneur and the relational resources of technology-based enterprises on the provision of public funding resources for innovation. The research was carried out in the State of São Paulo, Brazil, and encompasses incubated enterprises housed by technology-based incubators. The outcomes of this study indicate that: (i) there is a positive relationship between the individual resource of the entrepreneur and the provision of public resources for innovation, and (ii) there is a positive relationship between the establishment of partnerships with universities or institutes of science and technology and the provision of public resources for innovation. It is possible to assert that our study contributes positively for the literature on public funding for innovation, considering (i) the identification of the relevance of two variables in the process of selection accomplished by funding agencies; (ii) the focus on incubated technology-based micro and small-sized enterprises; and (iii) the application of theoretical propositions to a developing country. •The main intangible resources in technology-based small firms are: individual and relational resources of the entrepreneur.•Effective Competitive Advantage is achieved through intangible resources.•Public funding agencies select of entrepreneurs and enterprises that are most likely ones to become successful.•There is a positive relationship between the individual resources of the entrepreneur and the provision of public funding.•There is a positive relationship between the relational resources of the company and the provision of public funding.