EU study finds that European innovation support could be improved with more fast-tracking procedures, and a synergistic approach to combined support.
The European Commission published a study of the challenges facing SMEs in the European Union (EU) and the effectiveness of EU Innovation Support (INNOSUP) programmes. The study was carried out as part of an INNOSUP action funded by the European Innovation Council and SMEs Executive Agency (EISMEA) and found that SME satisfaction levels have risen since 2009 although they still face barriers to innovation.
These barriers vary according to the SME type, with both traditional and new emerging trends identified as posing difficulties. In particular, SMEs situated in Southern and Eastern Europe face relatively more barriers compared to those in Western and Northern Europe. Overall, SMEs consider the financial barrier as the most important obstacle. This is particularly true for micro-enterprises, which make up 93% of all firms in the EU. Slightly larger SMEs’ primary concern is access to skills, due to their limited networks.
As regards the effectiveness of EU INNOSUP funding, the report finds that it generally accelerates the introduction of innovation in new firms. Policy instruments deployed in Europe to support innovation are identified, as informed by the findings of the literature review: grants; soft loans, loan guarantees and capital support schemes; skill development or knowledge transfer instruments; technology and innovation advisory services; collaboration and networking instruments; clusters/science and technology parks; public procurement and government regulation; and, innovation system. Once again, SMEs from Eastern and Southern Europe are diagnosed out as generally lagging behind when it comes to challenges related to digitalisation and green Innovation. Cascade funding and lump sum approaches have proved to be effective mechanisms to support innovation. However, support instruments need to be tailored as much as possible to the type of firm, their needs, and their willingness and capability to innovate.
Overall, the study identifies the INNOSUP programme as highly successful, confirming the value of EU innovation support actions in helping SMEs embark on the green and digital transition and in fostering cross-border and cross-sectoral cooperation. Participants are largely satisfied with the volume and form of financial support, the transparency of the selection process and the easiness and duration of the application process. INNOSUP Actions could be even more effective by fast tracking procedures, combining them with other support initiatives and by raising the awareness level.