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Innovation in SMEs and Financing Mix

Author

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  • Joanna Błach

    (College of Finance, University of Economics in Katowice, ul. 1 Maja 50, 40-287 Katowice, Poland)

  • Monika Wieczorek-Kosmala

    (College of Finance, University of Economics in Katowice, ul. 1 Maja 50, 40-287 Katowice, Poland)

  • Joanna Trzęsiok

    (College of Finance, University of Economics in Katowice, ul. 1 Maja 50, 40-287 Katowice, Poland)

Abstract

This study addresses the types of innovation activity of SMEs (Small and medium-sized enterprises) in the European Union and its association with financing decisions. The main objective is to capture the cross-country differences in the types of innovation in SMEs and then investigate the relationship between the types of innovations and relevance of a given type of funding. In the empirical examinations, we use the non-parametric methods, due to the nature of the data. We have found out that there are differences in the types of innovation activity of SMEs in the cross-country dimension. We have also confirmed the contingencies between the types of innovations undertaken by SMEs in each cluster of the European countries, which suggests that various types of innovations co-exist. However, we have not found any unified pattern of correlations between the relevance of a given source of financing and a given type of innovation. Our study contributes to the ongoing debate on the different intensity of innovation activity of SMEs, as linked to the problem of the SMEs financing gap as one of the fundamental drivers of innovation.

Suggested Citation

  • Joanna Błach & Monika Wieczorek-Kosmala & Joanna Trzęsiok, 2020. "Innovation in SMEs and Financing Mix," JRFM, MDPI, vol. 13(9), pages 1-19, September.
    • Handle: RePEc:gam:jjrfmx:v:13:y:2020:i:9:p:206-:d:411507
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    References listed on IDEAS

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    Cited by:

    1. Agnieszka Kuś & Dorota Grego-Planer, 2021. "A Model of Innovation Activity in Small Enterprises in the Context of Selected Financial Factors: The Example of the Renewable Energy Sector," Energies, MDPI, vol. 14(10), pages 1-17, May.
    2. Ruchi Gupta & Bhanu Pratap Singh, 2024. "Does Access to Finance and Investment Climate Enhance Small and Medium Enterprises (SMEs) Innovation in India?," SN Operations Research Forum, Springer, vol. 5(4), pages 1-29, December.
    3. Luan, Siqiao & Hewitt-Dundas, Nola & Roper, Stephen, 2026. "Innovation grant (S)hopping: Unpacking SMEs' support choices between multiple potential funding sources," Research Policy, Elsevier, vol. 55(1).
    4. Mehmet Civelek & Jaroslav Schönfeld & Aleksandr Ključnikov & Marek Csabay & Alberto Ferraris, 2025. "Cross-country differences in the role of innovation performance in the relationship between entrepreneurial intention and access to finance," International Entrepreneurship and Management Journal, Springer, vol. 21(1), pages 1-38, December.
    5. Ștefan Cristian Gherghina, 2021. "Corporate Finance," JRFM, MDPI, vol. 14(2), pages 1-5, January.
    6. Alexakis, Christos & Gogas, Periklis & Petrella, Giovanni & Polemis, Michael & Salvadè, Federica, 2025. "Investigating the investment readiness of European SMEs: A machine learning approach," International Review of Financial Analysis, Elsevier, vol. 105(C).
    7. 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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