Evaluation of incentives for the purchase of qualified services by SMEs. The case of Tuscany

This study assesses the impact of the main aid program for the benefit of small and medium-sized enterprises (SMEs) qualifying services implemented by the regional administration of Tuscany for period 2007-2013. PRSE 2007-2010 Intervention Line 1.4, PAR FAS 2007-2013 Subproject 1.1B Action 1.3 and POR CREO ERDF 2007-2013 Action Line 1.3B “SME Aid for the Acquisition of Qualified Services”. More than 2,200 companies received the aid offered by the program, for a total of 2674 qualified services. Several funded companies have used the aid to get benefit from more than one qualified service; some have successfully submitted more questions over time. The impact assessment focuses on the total number of participating companies from 2011 onwards, and aims to estimate the impact of the program on a number of outcome variables concerning propensity to innovation and innovative business behaviors. The evaluation was carried out by adopting counterfactual statistical matching techniques, distinctly for the main types of qualified services used by the funded companies: technological product or process innovation services; services for organization innovation and the introduction of ICT technologies; services for commercial innovation and strategic market leadership. The results of this analysis suggest that, even looking at the relatively small size of the aid, program was only moderately effective in promoting change in businesses. However, it is appreciated that the program has succeeded in modifying at least some aspects of the behavior and innovative performance of assisted businesses.