Titolo della tesi: Evaluation of participation in Horizon 2020 and its impact on SMEs in European moderate innovator countries
In an era driven by economic growth and innovation, Small and Medium Enterprises (SMEs) play a pivotal role. The European Union, through its Framework Programs, aims to foster these developments. However, Europe grapples with R&D challenges and uneven innovation disparities. Our research delves into how SME participation in Horizon 2020 influences innovation, with a specific focus on moderate innovators such as Italy and Spain. While these countries have achieved significant rankings in Horizon 2020 participation, their innovation leadership within the moderate innovator group remains a subject of interest and exploration.
The primary aim of this research is to conduct a thorough evaluation of Italian and Spanish SME participation in Horizon 2020 and its implications. Utilizing diverse data sources, our aim was to reveal the strengths and weaknesses of SME engagement, comprehend the allocation of Horizon 2020 funding across various European priorities, sectors, and regions, and analyze the program's impact on innovation activity and economic performance. This study sought to shed light on Italy and Spain's positions within the moderate innovator category and offer evidence-based insights for policymakers, SMEs, and governments.
This study employs a mixed-methods approach relied on data from multiple sources. The primary data source for the chapter dedicated to both Italy and Spain included the Horizon dashboard at the firm data level, the CORDIS database for the chapter dedicated to Italy, and the Community Innovation Survey (CIS) 2018 for the chapter dedicated to Spain. The methodological framework integrates quantitative analyses like cross-country comparisons, regional analysis, economic impact assessments, sectoral analysis; and qualitative insights drawn from literature reviews and text analysis. The examination of the impact of Horizon 2020 funding on SME innovation activities and economic performance was conducted using a four-stage model of innovation, which covered both input and output additionality.
Despite Italy and Spain's strong positions in Horizon 2020 participation, they do not lead the group of moderate innovators. The reasons for this apparent paradox involve multifaceted dynamics, including the quality of research, practical application, and the overall innovation ecosystem. These findings are rooted in comparative figures within the peer group. In terms of the number of project proposals, participants in project proposals, and funded projects per 1000 researchers; Italy and Spain fall behind leading moderate innovator countries such as Estonia, Slovenia, and Greece. This suggests that their capabilities in proposing, participating, and securing projects may not be as strong as the leading innovators, indicating room for improvement in these aspects.
Comparing Horizon 2020 with its predecessor FP7, there is a substantial increase in SME participation for both Italian and Spanish SMEs, indicating a growing trend. This supports the idea that SMEs in these countries are increasingly recognizing the benefits and opportunities provided by European Framework Programs. On the other hand, it's important to note that it doesn't directly address the overall success rates. The data also suggests that the success rates for SMEs in Horizon 2020 are generally lower for all countries compared to FP7, with exceptions for Lithuanian and Greek SMEs from the peer group of moderate innovators countries. This implies that securing funding in Horizon 2020 might have been more challenging for SMEs, which could be considered an underperforming aspect of Horizon 2020 compared to FP7.
The prototype of Italian SMEs that has demonstrated the most potential in absorbing Horizon 2020 funds comprises "Micro and Small enterprises, particularly those involved in Manufacturing, Professional, scientific, and technical activities, and Information & communication services, operating in the Northwest area, led by a male managing director, with 6-15 years of activity with the legal form of Limited Liability Company. These SMEs exhibit a higher level of innovation potential, making them key contributors to Italy's innovation ecosystem.
Also, Spanish SMEs operating within the "Professional, scientific and technical activities" sector have attracted a disproportionately high share of Horizon 2020 funding compared to SMEs in other sectors, with 35.4% higher participation compared to the total participation of all Spanish SMEs in the CIS 2018 survey; signifying a strong ability to secure funding and actively participate in Horizon 2020 projects. The sectoral distribution of Italian and Spanish SMEs in Horizon 2020 projects revealed concentration of funding in the dominant categories reflecting the program's responsiveness to sector-specific priorities, competitiveness, and alignment with EU research agendas. It has rewarded sectors with robust capabilities, innovation potential, and a demonstrated capacity to address societal challenges.
Horizon 2020 has not substantially reduced regional disparities in Italy and Spain, indicating the persistence of historical disparities.
Participation in the Horizon 2020 program is positively associated with increased sales growth in Italian SMEs, particularly in the "most innovative" group. However, this increased sales growth does not necessarily translate into equivalent profit growth. In Spain, while participation in the Horizon 2020 program appears to significantly enhance the innovation performance of SMEs, it might not directly translate into improved turnover growth. The research hints at potential factors influencing the relationship between innovation funding and profitability. Balancing innovation and growth are essential for enterprise performance.
This study provides essential insights into SME participation in Horizon 2020 and its broader implications for innovation, societal development, and economic growth. The results highlight the complexity of innovation dynamics, extending beyond participation figures to encompass research quality, application, and the broader innovation environment.
The identified prototype of Italian SMEs with higher chances of obtaining Horizon 2020 funds can serve as a guide for future engagement. While Horizon 2020 has made contributions to innovation
and regional development, the persistence of regional disparities and the nuanced relationship between innovation and profit growth underscore the need for balanced strategies.
This research lays the foundation for future investigations and informs evidence-based policymaking, not only in Italy and Spain but also across the European landscape. It underscores the critical role of SMEs in driving development, particularly within moderate innovator countries. Ultimately, this study contributes to a broader understanding of SME participation in research and innovation programs and paves the way for more informed policy frameworks that promote SME competitiveness and stimulate innovation-driven economic growth.