IDEAS home Printed from https://ideas.repec.org/a/ete/revbec/20080302.html
   My bibliography  Save this article

The Role of SMEs in Innovation in the EU. A Case for Policy Intervention?

Author

Listed:
  • R. Veugelers

Abstract

Innovation policies, addressing the barriers that inhibit Small- and Medium-Sized Enterprises (SMEs) to innovate, have the potential to be extremely effective. Nevertheless, as this article will illustrate, market failure for innovating SMEs needs to be carefully identified, to better target government policies. And even if policy is well targeted, there could still be failures in implementation, as the evidence from actual policies being implemented in the EU and elsewhere suggest. In order to support policy making for stimulating innovation at SMEs, this article first reviews the empirical evidence on the contribution of SMEs to innovation, examining whether the barriers to innovation are related to market failures and whether SMEs are affected more by market failure induced barriers. We also take a look at trends in actual SME innovation policies in Member States and at EU level and how they have been evaluated on effectiveness. A concluding section channels the insights from this evidence into suggestions for improving policies towards SMEs and Innovation. The potential for specific SME Innovation policies, towards Young Innovative Companies (YICs) with radical innovations is identified.

Suggested Citation

  • R. Veugelers, 2008. "The Role of SMEs in Innovation in the EU. A Case for Policy Intervention?," Review of Business and Economic Literature, KU Leuven, Faculty of Economics and Business, Review of Business and Economic Literature, vol. 0(3), pages 239-262.
  • Handle: RePEc:ete:revbec:20080302
    as

    Download full text from publisher

    File URL: https://lirias.kuleuven.be/bitstream/123456789/211338/2/Pages+from+18193_ReBEL_2008_03%281%29.pdf
    Download Restriction: no

    More about this item

    Keywords

    SMEs; Innovation; Policy; YICs;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ete:revbec:20080302. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (library EBIB). General contact details of provider: http://edirc.repec.org/data/fekulbe.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.