The Development Subsidies seem to help firms to grow and prosper

A brand new publication on the development subsidy for companies and the development subsidy for the operational environment evaluates how well the goals set for these subsidies have been achieved and how effective the subsidies are from the viewpoints of companies, the Centres for Economic Development, Transport and the Environment (ELY) and interest groups. The focus is on the evaluation of the development subsidy for companies.

The research was conducted by a team at the TSE Entre. The data for the research was gathered by conducting survey to companies (n=1,022) which have applied for the subsidy, to ELY Centres (n=71) and interest groups (n=97). Further, a number of case studies on the development projects were conducted.

The results show that the companies were mostly very satisfied with the development subsidy for companies. The suggestions to improve the scheme were mainly targeted to increasing of customer orientation and flexibility. In addition, more e-services were asked for and the subsidy was suggested to be paid partly in advance. The findings suggest that there is some geographical variation involved; the industrial companies in the Eastern and Northern Finland are mostly granted for implementing their investment projects, whereas the expert companies in the Southern and Western Finland rather carry out development projects.

The subsidy seems to be most significant for growth companies. On the other hand, the effects of the subsidy on improving know-how or networking are quite modest.

More details and the report can be found here.

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