Innovation dynamics in public funding: a comparative analysis of social economy and capitalist organisations in public–private partnerships

Purpose This study aims to examine how public funding mechanisms shape innovation dynamics in public–private partnerships (PPPs), with a comparative focus on capitalist enterprises and social economy entities. The research investigates differences in funding success, thematic orientation and financial performance, considering how these factors reflect broader patterns of equity and efficiency. By testing theory-informed hypotheses, the study contributes to understanding the institutional and organisational conditions that influence the distribution and impact of innovation-related public investment. Design/methodology/approach The analysis was based on a data set derived from the definitive proposal for the allocation of public grants for research and development (R&D) projects. Additional financial data from the Sistema de Análisis de Balances Ibéricos database (SABI) enriched the sample. Statistical tests, including Pearson’s Chi-square, Mann–Whitney U and Kruskal–Wallis, were used to evaluate differences between groups. Furthermore, a two-step cluster analysis was conducted to identify distinct profiles of organisations based on financial and thematic variables. Findings The results highlight that social economy entities and capitalist enterprises contribute to innovation through complementary strengths. Social economy entities often align with sustainability and social impact themes, achieving notable success in securing funding aligned with these priorities. Capitalist enterprises, while exhibiting budgetary variability, demonstrate strong capacity in projects tied to technological innovation. Moreover, public organisations collaborating with capitalist enterprises tend to allocate larger budgets, suggesting opportunities for scaling innovative solutions. These findings underscore the importance of balanced funding mechanisms to leverage the unique strengths of each organisational type. Originality/value This study offers a comparative perspective on the dynamics of funding allocation between social economy entities and capitalist enterprises in PPPs. It challenges traditional assumptions about the financial dominance of capitalist enterprises and highlights the strategic role of social economy organisations in promoting sustainability and equity. The findings contribute to the literature on public funding, organisational learning and social innovation by integrating financial and thematic dimensions in the analysis of PPPs.