Assessing the Korea Technology Innovation Program for SMEs (KTIPS), which plays the biggest role in offering public money to SMEs in Korea, this paper examine the effects of the South Korean government R&D subsides on SMEs' competitiveness. Since competitiveness of SMEs can be measured by sales growth, this paper studies the differences in sales growth between government R&D subsidy awardees and non-awardees during 2006--2008. The results do not support that government R&D subsidies awarded in 2006 have a statistically significant impact on SMEs' sales growth between 2006 and 2008. However, the results suggest that younger companies, whose ages are not more than 3 years, may benefit from the subsidies.
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