The Effect of Government Financial Support on Innovation of Knowledge-Based Firms: Based on Iran Innovation Survey Data

In today's world, the survival of any organization or company requires its ability to compete with other organizations, and since innovation is one of the most important drivers of companies' competitiveness, is able to Create dynamism, maintain the survival of organizations; On the other hand, one of the challenges for any organization to innovate is the issue of financing, and since governments around the world have programs to support the innovation of small and medium enterprises and knowledge-based, the purpose of this paper examines the impact of government financial supports on the innovation of knowledge-based firms. To analyze this issue, the data of Iran Innovation Survey in the period from 2012 to 2014 has been used. The implementation of the National Innovation Survey Plan has been carried out by the Vice President for Science and Technology in order to promote innovative and technological capacities in the country and the transition to a knowledge-based economy. The number of knowledge-based firms in this period was 1300 firms, of which 306 firms were selected from a random sample. The method of the present study is the modeling of structural equations based on variance and SPSS and PLS software were used to analyze the data. The research findings show that government financial support has a positive effect on the process, marketing, and organizational innovations of knowledge-based firms, while these conditions do not exist for product innovation.