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The economic role of small knowledge intensive firms in European member states

Author

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  • Diogo E. Ferraz
  • Elisabeth T. Pereira

Abstract

The Europe 2020 Strategy considers the micro, small and medium-sized enterprises (SMEs) the backbone of European member states to achieve a smart, sustainable and inclusive economic growth. The present study has as purpose to investigate the relationship between a set of variables that characterises the small knowledge intensive firms (SKIFs) and gross domestic product (GDP) and the importance of their business expenditure on research and development (BERD). To achieve this purpose, 24 European member states were analysed during the period between 2008 and 2012 using the econometric analysis of panel data and cluster analysis. The obtained results allow to conclude that countries with high growth values on SKIFs also have growth in GDP and BERD, emphasising a direct relationship of SKIF with country macroeconomic variables.

Suggested Citation

  • Diogo E. Ferraz & Elisabeth T. Pereira, 2018. "The economic role of small knowledge intensive firms in European member states," International Journal of Knowledge-Based Development, Inderscience Enterprises Ltd, vol. 9(3), pages 221-243.
    • Handle: RePEc:ids:ijkbde:v:9:y:2018:i:3:p:221-243
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