THE IMPACT OF GOVERNMENT SUPPORT ON THE INNOVATION ACTIVITIES OF SMALL AND MEDIUM-SIZED ENTERPRISES

Abstract

This thesis examines how government support influences innovation in small and medium-sized enterprises. It considers financial assistance, tax incentives, advisory services, innovation infrastructure, public procurement, and cooperation with research institutions. A qualitative review and comparative analysis of international reports and academic studies were used. The findings show that effective public support can reduce innovation risks, improve access to technology and knowledge, and accelerate the commercialization of new products and processes. Its impact, however, depends on transparent selection, accessible procedures, institutional coordination, managerial competence, and systematic evaluation. Fragmented programmes, excessive bureaucracy, and poorly targeted subsidies may weaken results. The study concludes that government intervention is most effective when finance is combined with skills development, networking, digital infrastructure, and market-oriented measures.