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The Effects Of Eu R&I Funding On Sme Innovation And Business Performance In New Eu Member States: Firm-Level Evidence

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  • Nevenka Čučković
  • Valentina Vučković

Abstract

SMEs are the most dynamic and vibrant part of the enterprise sector in terms of start-ups and new jobs, and a sig-nificant share of the EU’s total innovation activities take place within them. This pa-per uses the Community Innovation Survey (CIS) 2014 and eCORDA data to analyse whether SME participation in EU research and innovation (R&I) funding programmes has increased their innovation activities and business performance. To achieve this, we empirically test whether SMEs that re-ceived EU funds recorded an improvement in their innovation and economic perfor-mance. This is measured by research and development (R&D) expenditure, product innovation, turnover, and employment. The paper focusses particularly on new EU member countries and among them to those from Central and Eastern Europe (CEE). It explores the theoretical and meth-odological backgrounds that guided us in these analyses and performs treatment ef-fect analysis at firm level, using CIS CD-ROM data that we received on request from Eurostat. The obtained results indicate that EU R&I funding is beneficial to the inno-vation activities of SME recipients, and to their overall business performance. It also assists new EU member states in the process of ‘catching up’ to the growth levels of more established EU economies.

Suggested Citation

  • Nevenka Čučković & Valentina Vučković, 2021. "The Effects Of Eu R&I Funding On Sme Innovation And Business Performance In New Eu Member States: Firm-Level Evidence," Economic Annals, Faculty of Economics and Business, University of Belgrade, vol. 66(228), pages 7-42, January –.
    • Handle: RePEc:beo:journl:v:66:y:2021:i:228:p:7-42
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    1. Meda Andrijauskiene & Daiva Dumciuviene & Jovita Vasauskaite, 2021. "Redeveloping the National Innovative Capacity Framework: European Union Perspective," Economies, MDPI, vol. 9(4), pages 1-30, December.
    2. Sonja Đuričin & Isidora Beraha & Olivera Jovanović & Marija Mosurović Ružičić & Marija Lazarević-Moravčević & Mihailo Paunović, 2022. "The Efficiency of National Innovation Policy Programs: The Case of Serbia," Sustainability, MDPI, vol. 14(14), pages 1-14, July.

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    More about this item

    Keywords

    SMEs; innovation; R&D; EU R&I funding;
    All these keywords.

    JEL classification:

    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D
    • O38 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Government Policy
    • O52 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Europe

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