This study empirically examines the impact of government research and development (R&D) budget cuts on the financial performance of research safety equipment procurement companies. To achieve this, econometric techniques such as propensity score matching (PSM), difference-in-differences (DID), and the synthetic control method (SCM) were employed to compare changes in net income and operating profit between experimental and control groups before and after the budget reduction. The analysis reveals that budget cuts negatively affected the profitability of procurement companies, with financially vulnerable firms experiencing greater declines. In contrast, companies with active R&D investment tended to respond more flexibly to the policy change, suggesting that internal innovation capacity can mitigate part of the adverse impact. These findings indicate that government R&D budgets function as a critical fiscal instrument influencing the stability of the entire research safety equipment supply chain and the sustainability of the industrial ecosystem. Accordingly, future R&D policies should be designed to systematically account for cascade effects across the supply chain and potential indirect financial damages.