Asia Pacific Journal of Information Systems (APJIS)

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Past Issue

Date	June 2023
Vol. No.	Vol. 33 No. 2
DOI	https://doi.org/10.14329/apjis.2023.33.2.444
Page	444~467
Title	The Role of Technology-Transfer-Oriented Subsidies in Building Companies’ Absorptive Capacity and Innovation: Evidence from Peruvian MSMEs
Author	Maria Fernanda Ricalde-Chahua, Christian Fernando Libaque-Saenz
Keyword	Technology Transfer, Absorptive Capacity, Innovation, Government Subsidy, MSMEs
Abstract	Micro, small, and medium-sized enterprises (MSMEs) have been acknowledged to play a key role in promoting innovation and economic development. In Peru, 99.5% of formal firms are MSMEs, thus promoting innovation in these firms could have a significant impact on the Peruvian economy. In spite of Innovate Peru’s efforts, Peru is still one of the countries that invests the least in innovation, with MSMEs offering low value added. Innovate Peru has launched programs (technological missions) to improve MSMEs’ innovation through technology- transfer-oriented subsidies, which may strengthen companies’ absorptive capacity (AC) and thus their capabilities to identify and integrate internal and external knowledge. This study assesses the impact of these programs on MSMEs. Data were collected from 85 MSMEs that participated in Innovate Peru’s technological missions between 2014 and 2016. Findings show that all the dimensions of AC have a positive impact on innovation; however, the impact of economic subsidy was found to be non-significant. Theoretical and practical implications are discussed.

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