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Determinants of innovations in small and medium enterprises: a european and international experience

русская версия

Опубликовано на портале: 06-07-2019
TERRA ECONOMICUS. 2019.  Т. 17. № 2. С. 112-123. 
Тематический раздел:
This paper focuses on the determinants of innovations in small and medium enterprises (SMEs). SMEs play a decisive role in economic transformation by creating additional workplaces and thence levelling the unemployment, contributing to the local budgets, or promoting innovations and economic growth. Moreover, they play a key role in the integrated development of formal and informal entrepreneurial institutions. Thence, innovations represent an important factor for fostering the growth and development of SMEs and are likely to contribute to their overall success and economic profits. In this paper, we use the data from the selected European Union (EU) countries and employ the empirical model envisaged for singling out the factors that influence innovation in SMEs. We use econometric modelling with several variables in order to determine relationships and draw the causalities. Our results demonstrate that higher competition, investment into technologies and optimisation tend to foster innovations, while obsolete equipment and personnel, as well as financial and administrative barriers tend to present obstacles for innovations. We also found that it is important for every SME to concentrate on its inner structure, management, skills and ambitions which are required for formulating a clear innovative strategy on a path to successful growth and success on the market.
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