Acknowledging diversity in knowledge-intensive entrepreneurship: assessing the Brazilian small business innovation research

This article analyzes a policy instrument that nurtures knowledge-intensive entrepreneurship in the State of São Paulo, Brazil. The PIPE Program is a small-business innovation research run by The Sao Paulo Research Foundation since 1997. While prior literature has pointed out that firm-level heterogeneity is an important feature to consider when evaluating these kinds of policies, heterogeneity has not been appropriately addressed as a factor of consideration for improving funding effectiveness. This study contributes to the literature by empirically appraising the Brazilian PIPE Program, while explicitly considering heterogeneity across firms. We conduct an empirical evaluation of a set of companies funded and non-funded by PIPE employing a multiple correspondence analysis followed by a clustering analysis. The results identify firm performance patterns on different dimensions, determining that the effects associated with the PIPE vary according to firm characteristics. Findings underscore the need to incorporate heterogeneity across firm types as a relevant source of evidence in funding instruments to support policy design and decision-making toward a more effective allocation of resources.