Why and How Innovation Vouchers Work: Disentangling the Roles of Serendipity and Funding

Innovation vouchers are policy instruments supporting the collaboration of small and medium enterprises (SMEs) with specialized knowledge suppliers. These innovation vouchers are typically appreciated by beneficiaries because of their simple application and reporting procedures. However, because of their small size, innovation vouchers seem to have relatively limited impacts. This study analyzes the outcome of an innovation voucher scheme through a survey of 582 Italian firms receiving these vouchers in 2011. Findings show that the effects of the vouchers are mainly indirect: the vouchers foster new skills development and trigger unforeseen results. Given the local nature of the voucher measure, results also control for geographical, technological, and social proximity among beneficiaries and suppliers.