Using RCTs as a research method for SME policy research: The UK experience

Abstract

Randomised control trials (RCTs) have a number of theoretical advantages over more standard quasi-experimental or econometric research methodologies, particularly the avoidance of selection bias. In the UK, recent budgetary pressures have created a renewed interest in evidence-based policy-making, and one aspect of this has been the implementation of a series of RCTs to investigate the effectiveness of different types of SME support. These focus on the value of external business advice, innovation support, leadership coaching, and management and leadership training, as well as the effectiveness of alternative forms of communicating with firms. We briefly describe the trials and identify the operational and tactical issues that arise in the implementation of research experiments based on an RCT approach. Experience from medical trials also suggests the value of replication and synthesis, epitomised in the Cochrane reviews, suggesting the value of repeated trials.