Structural equation model for the evaluation of national funding on R&D project of SMEs in consideration with MBNQA criteria

S. Y. Sohn, Yong Gyu Joo, Hong Kyu Han

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55 Citations (Scopus)


Financial support on the R&D in Science & Technology for SMEs at the governmental level plays a crucial role on the improvement of the national competitiveness. Korea Science & Engineering Foundation (KOSEF) has supported the R&D projects of SMEs with the competitive technology ability by way of the Science and Technology Promotion Fund. In this paper, we propose a structural equation model (SEM) to evaluate the performance of such a funding program in terms of three aspects: output, outcome and impact under given funding inputs, R&D environment of a recipient company, and external evaluation programs of funding organization. We adopt Malcolm Baldrige National Quality Award (MBNQA) criteria to assess the R&D environmental factors of recipient companies. In addition, we test the effect of interim evaluation of the funded project. The proposed model is applied to the real case and is used to identify the best practices as well as to provide feedback information for the improvement of the government funding programs of the R&D projects of SMEs.

Original languageEnglish
Pages (from-to)10-20
Number of pages11
JournalEvaluation and Program Planning
Issue number1
Publication statusPublished - 2007 Feb

Bibliographical note

Funding Information:
We apply the proposed SEM to the R&D projects supported by the Science & Technology Promotion Fund from Korea Science and Engineering Foundation (KOSEF) during 2000–2003.

Funding Information:
KOSEF established a Science & Technology Promotion Fund in 1993 and has funded technology-intensive SMEs. shows the budget of Science & Technology Promotion Fund consisting of both security and technology credit guarantee fund by year (2000–2004). Table 2

Funding Information:
Our findings imply the importance of internal R&D process of the recipient company and the external fund evaluation program of the funding organization. Information system of the recipient company would have the long-term potential effect on the technological performance. Some better strategies are needed for commercialization of R&D in view of relatively low performances of new product development and product improvement to technology improvement.

All Science Journal Classification (ASJC) codes

  • Business and International Management
  • Social Psychology
  • Geography, Planning and Development
  • Strategy and Management
  • Public Health, Environmental and Occupational Health

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