Abstract
We study the effects of a subsidy program for boosting export capabilities of SMEs through the hiring of a consultant (a Temporary Export Manager - TEM), who works for at least 6 months in a firm to provide advice and guidance on how to internationalize production and reach foreign markets. Firms applied online for the subsidy, and vouchers to hire TEMs were allocated on a first-come, first-served basis. We use a local differences-in-differences design among firms who applied within a 30 radius seconds around the time of exhaustion of the budget and compare the performances of firms who nearly got the subsidy with those that barely did not. Eligible firms experienced an increase in revenues, ROE, profits and value added per employee. These performances were accompanied by a significant growth in export in extra-EU markets in the fourth year after receiving the subsidy. Before starting to export, TEMs were also effective in stimulating `good' labor demand, with an overall increase of the workforce of about 13%, mainly composed by full time and permanent employees.