The literature on R&D subsidy programs has mainly focused on final outcomes and has
largely ignored the allocation processes of R&D programs. In our view the implementation of
programs and allocation of funds is likely to have a profound impact on the final outcome of
the subsidy programs, e.g. on the question of whether R&D subsidies crowd out private
investment or if there might be additionalities.
We use a framework introduced by Heckman and Smith (2004) decomposing the allocation
process of subsidies into the stages eligibility, awareness, application, acceptance and
enrolement. We will focus on the step “acceptance” of proposals into a specific German R&D
subsidy program. We theoretically identify economical and political rationales and
psychological grounded motives that are likely to play a role when it comes to deciding which
projects to subsidize and we develop a set of testable hypotheses. We empirically test these
hypotheses and hence identify the implicitly used allocation rules or heuristics of the experts
in charge of the “acceptance” stage using a unique dataset. Among others we find that the
sectors manufacturing and construction have better chances to receive funding than the
service sectors. For the size of the companies we find an inverted U-shape relationship while
for age we find a U-shape relationship with regards to acceptance.

New growth engine of the future worldwide, to develop and strengthen a variety of
policy support, and the key role that small businesses can be called R&D. These companies
are among a variety of government policies to support the representative from this
technology finance. Already, our Government is also investing, financing, etc., of gold
or the Government appeared in a variety of ways to support, and its importance is growing
more. In particular, small & medium-sized R&D technical development of policy for
financial representative small business Corporation in the development of technology
commercialization funding (loans), and releases of, the whole of the policy Finance
Corporation of Korea landing (on-lending) in the way of a new growth engine industries,
the financial support of Taiwan. However, these technical and financial performance
management SME R&D is still firmly in place. In particular, the enormous scale of the
commitment is effective for operations and technology r & d financial performance
management system to secure the effectiveness of the policy in the future, the creation
of an important issue. Therefore, the article is representative of small business
technology finance R&D financing way supported development technology commercialization
funding for performance management systems analysis and policy measures for effective
performance management.