The Effects of Support to Promote Innovation at SMEs by Local Governments in Japan

摘要

The goal of this study is to clarify the effect of policies for promoting innovation at SMEs by localgovernment Osaka city in Japan. An empirical analysis of an interview and questionnaire survey in a casestudy of the innovation promotion policy “Osaka Top Runner Project,” indicates the following results:support by Osaka Top Runner Project creates intermediate results such as fostering of market orientationbased upon customer orientation, competitor orientation and interfunctional coordination and acquisitionof firm-specific informational resources, leading to final outcomes such as making new businessesprofitable, prospects of success and business continuity. Based upon this result, we present a hypothesisfor a causal model between innovation promotion policy (cause) and its effect.