Effectiveness of Public Support for Business Innovation from EU Funds: Case Study in Slovakia

Effective public support of innovations, research and development represents one of the priorities of the European Union (EU). The aim of this paper was to examine the effectiveness of one such public programme – public support for business innovation from EU funds in Slovakia – by using selected quasi-experimental design methods on the example of the Operational Programme Competitiveness and Economic Growth for the programming period 2007 – 2013. The value added of this paper is the fact that we use the method proposed and used by the European Commission and Slovak national authorities. The “difference-in-differences” method is used to compare the changes in value added of supported firms before and after the intervention in comparison to firms that did not receive support. The results suggest that the public support from selected calls of the evaluated operational programme was effective and delivered improvements not only in the field of innovativeness and competitiveness, but also in the area of employment. The evaluated call was much more effective compared to other calls of the programme evaluated by other authors. The responses from the management body suggest that the core success factors were the contents of the call and timing.