TY  - RPRT
        AU  - Heshmati, Almas
        TI  - The Effect of Credit Guarantees on R&D Investment of SMEs in Korea
        PY  - 2013/Dec/
        PB  - Institute of Labor Economics (IZA)
        CY  - Bonn
        T2  - IZA Discussion Paper
        IS  - 7851
        UR  - https://www.iza.org/publications/dp7851
        AB  - Korean government has invested significant amount of resources through credit guarantee funds to promote SMEs survival, performance and R&D investment. This study attempts to identify determinants of provision of credit guarantees and estimate their effects on firms R&D expenditures. The relationship between duration of credit and firm's survival and performance is also investigated. Account is made for heterogeneity by various characteristics of firms when looking at credit guarantee and in-house R&D investment relationships. This study results in identification of factors that enhances efficiency of funds and their effects on firms' R&D investment behavior. It enables feedback effects on the public funds selection of firms guaranteed. A number of policy measures are proposed to promote a better balance between public and private investments to reduce the risk of business failure.
        KW  - firm performance
KW  - R&D investment
KW  - public funds
KW  - SMEs
KW  - Credit Guarantee
KW  - firm survival
KW  - Death Valley
        ER  -