IDEAS home Printed from https://ideas.repec.org/a/kap/sbusec/v65y2025i1d10.1007_s11187-025-01017-2.html
   My bibliography  Save this article

AI, robots and innovation in European SMEs

Author

Listed:
  • Agustí Segarra-Blasco

    (Universitat Rovira i Virgili, Department of Economics, ECO-SOS, Av. Universitat, 1)

  • Josep Tomàs-Porres

    (Universitat Rovira i Virgili, Department of Economics, ECO-SOS, Av. Universitat, 1
    Università degli Studi di Torino, Department of Economics and Statistics “Cognetti de Martiis”)

  • Mercedes Teruel

    (Universitat Rovira i Virgili, Department of Economics, ECO-SOS, Av. Universitat, 1)

Abstract

There is increasing interest in the impact of advanced digital technologies on SMEs, but the determinants of their adoption and their association with multiple innovation outcomes remain unexplored. Based on the Flash Eurobarometer 486, this paper analyses how the adoption of artificial intelligence and robots is related to European SMEs carrying out product, process, organizational and marketing innovations. Our results establish scale-ups and start-ups as the most likely adopters of these technologies and the most innovative firms. Furthermore, internal characteristics, such as internationalization and firm size, and external factors, such as the availability of digital skills and infrastructure, are significant drivers of digitalization at the firm level. In a two-stage approach, we find that the adoption of artificial intelligence and robots is associated with all innovation types, although these technologies serve more specialised objectives in manufacturing rather than in service sectors. Our results confirm a significant variability in the adoption of artificial intelligence and robots, as well as heterogeneous associations with innovation outcomes.

Suggested Citation

  • Agustí Segarra-Blasco & Josep Tomàs-Porres & Mercedes Teruel, 2025. "AI, robots and innovation in European SMEs," Small Business Economics, Springer, vol. 65(1), pages 719-745, June.
    • Handle: RePEc:kap:sbusec:v:65:y:2025:i:1:d:10.1007_s11187-025-01017-2
    DOI: 10.1007/s11187-025-01017-2
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s11187-025-01017-2
    File Function: Abstract
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1007/s11187-025-01017-2?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to

    for a different version of it.

    References listed on IDEAS

    as
    1. Geweke, John, 1989. "Bayesian Inference in Econometric Models Using Monte Carlo Integration," Econometrica, Econometric Society, vol. 57(6), pages 1317-1339, November.
    2. Nicholas Bloom & Charles I. Jones & John Van Reenen & Michael Webb, 2020. "Are Ideas Getting Harder to Find?," American Economic Review, American Economic Association, vol. 110(4), pages 1104-1144, April.
    3. Joseph Zeira, 1998. "Workers, Machines, and Economic Growth," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 113(4), pages 1091-1117.
    4. Keane, Michael P, 1994. "A Computationally Practical Simulation Estimator for Panel Data," Econometrica, Econometric Society, vol. 62(1), pages 95-116, January.
    5. Rampersad, Giselle, 2020. "Robot will take your job: Innovation for an era of artificial intelligence," Journal of Business Research, Elsevier, vol. 116(C), pages 68-74.
    6. Daron Acemoglu & Gary W. Anderson & David N. Beede & Catherine Buffington & Eric E. Childress & Emin Dinlersoz & Lucia S. Foster & Nathan Goldschlag & John Haltiwanger & Zachary Kroff & Pascual Restre, 2024. "Automation and the Workforce: A Firm-Level View from the 2019 Annual Business Survey," NBER Chapters, in: Technology, Productivity, and Economic Growth, pages 13-55, National Bureau of Economic Research, Inc.
    7. Arianna Martinelli & Andrea Mina & Massimo Moggi, 2021. "The enabling technologies of industry 4.0: examining the seeds of the fourth industrial revolution [Mapping innovation dynamics in the Internet of Things domain: evidence from patent analysis]," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 30(1), pages 161-188.
    8. Lyra J. Colfer & Carliss Y. Baldwin, 2016. "The mirroring hypothesis: theory, evidence, and exceptions," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 25(5), pages 709-738.
    9. Terza, Joseph V. & Basu, Anirban & Rathouz, Paul J., 2008. "Two-stage residual inclusion estimation: Addressing endogeneity in health econometric modeling," Journal of Health Economics, Elsevier, vol. 27(3), pages 531-543, May.
    10. Audretsch, David & Colombelli, Alessandra & Grilli, Luca & Minola, Tommaso & Rasmussen, Einar, 2020. "Innovative start-ups and policy initiatives," Research Policy, Elsevier, vol. 49(10).
    11. Aaldering, Lukas Jan & Song, Chie Hoon, 2021. "Of leaders and laggards - Towards digitalization of the process industries," Technovation, Elsevier, vol. 105(C).
    12. Montobbio, Fabio & Staccioli, Jacopo & Virgillito, Maria Enrica & Vivarelli, Marco, 2022. "Robots and the origin of their labour-saving impact," Technological Forecasting and Social Change, Elsevier, vol. 174(C).
    13. Mula, Claire & Zybura, Nora & Hipp, Thomas, 2024. "From digitalized start-up to scale-up: Opening the black box of scaling in digitalized firms towards a scaling process framework," Technological Forecasting and Social Change, Elsevier, vol. 202(C).
    14. Zoltan J. Acs & Abraham K. Song & László Szerb & David B. Audretsch & Éva Komlósi, 2021. "The evolution of the global digital platform economy: 1971–2021," Small Business Economics, Springer, vol. 57(4), pages 1629-1659, December.
    15. Faïz Gallouj & Maria Savona, 2009. "Innovation in services: a review of the debate and a research agenda," Journal of Evolutionary Economics, Springer, vol. 19(2), pages 149-172, April.
    16. Agrawal, Ajay & Gans, Joshua S. & Goldfarb, Avi, 2019. "Exploring the impact of artificial Intelligence: Prediction versus judgment," Information Economics and Policy, Elsevier, vol. 47(C), pages 1-6.
    17. Colin J. Hottman & Stephen J. Redding & David E. Weinstein, 2016. "Quantifying the Sources of Firm Heterogeneity," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 131(3), pages 1291-1364.
    18. Daron Acemoglu & Pascual Restrepo, 2018. "The Race between Man and Machine: Implications of Technology for Growth, Factor Shares, and Employment," American Economic Review, American Economic Association, vol. 108(6), pages 1488-1542, June.
    19. Rammer, Christian & Fernández, Gastón P. & Czarnitzki, Dirk, 2022. "Artificial intelligence and industrial innovation: Evidence from German firm-level data," Research Policy, Elsevier, vol. 51(7).
    20. Ghezzi, Antonio, 2019. "Digital startups and the adoption and implementation of Lean Startup Approaches: Effectuation, Bricolage and Opportunity Creation in practice," Technological Forecasting and Social Change, Elsevier, vol. 146(C), pages 945-960.
    21. Joseph V. Terza, 2017. "Two-stage residual inclusion estimation: A practitioners guide to Stata implementation," Stata Journal, StataCorp LLC, vol. 17(4), pages 916-938, December.
    22. Vassilis A. Hajivassiliou & Daniel L. McFadden, 1998. "The Method of Simulated Scores for the Estimation of LDV Models," Econometrica, Econometric Society, vol. 66(4), pages 863-896, July.
    23. Alexander Kopka & Dirk Fornahl, 2024. "Artificial intelligence and firm growth — catch-up processes of SMEs through integrating AI into their knowledge bases," Small Business Economics, Springer, vol. 62(1), pages 63-85, January.
    24. Blichfeldt, Henrik & Faullant, Rita, 2021. "Performance effects of digital technology adoption and product & service innovation – A process-industry perspective," Technovation, Elsevier, vol. 105(C).
    25. Adelheid Holl & Ruth Rama, 2024. "Spatial Patterns and Drivers of SME Digitalisation," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 15(2), pages 5625-5649, June.
    26. Acemoglu, Daron & Autor, David, 2011. "Skills, Tasks and Technologies: Implications for Employment and Earnings," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 4, chapter 12, pages 1043-1171, Elsevier.
    27. Antonioli, Davide & Marzucchi, Alberto & Rentocchini, Francesco & Vannuccini, Simone, 2024. "Robot adoption and product innovation," Research Policy, Elsevier, vol. 53(6).
    28. Dolores Añón Higón & Daniel Bonvin, 2024. "Digitalization and trade participation of SMEs," Small Business Economics, Springer, vol. 62(3), pages 857-877, March.
    29. Battaglia, Daniele & Galati, Francesco & Molinaro, Margherita & Pessot, Elena, 2023. "Full, hybrid and platform complementarity: Exploring the industry 4.0 technology-performance link," International Journal of Production Economics, Elsevier, vol. 263(C).
    30. Lorenzo Cappellari & Stephen P. Jenkins, 2003. "Multivariate probit regression using simulated maximum likelihood," Stata Journal, StataCorp LLC, vol. 3(3), pages 278-294, September.
    31. Forman, Chris & van Zeebroeck, Nicolas, 2019. "Digital technology adoption and knowledge flows within firms: Can the Internet overcome geographic and technological distance?," Research Policy, Elsevier, vol. 48(8), pages 1-1.
    32. Igna, Ioana & Venturini, Francesco, 2023. "The determinants of AI innovation across European firms," Research Policy, Elsevier, vol. 52(2).
    33. Finkelstein Shapiro, Alan & Mandelman, Federico S., 2021. "Digital adoption, automation, and labor markets in developing countries," Journal of Development Economics, Elsevier, vol. 151(C).
    34. Cirillo, Valeria & Fanti, Lucrezia & Mina, Andrea & Ricci, Andrea, 2023. "The adoption of digital technologies: Investment, skills, work organisation," Structural Change and Economic Dynamics, Elsevier, vol. 66(C), pages 89-105.
    35. Agrawal, Ajay & McHale, John & Oettl, Alexander, 2019. "Does scientist immigration harm US science? An examination of the knowledge spillover channel," Research Policy, Elsevier, vol. 48(5), pages 1248-1259.
    36. Babina, Tania & Fedyk, Anastassia & He, Alex & Hodson, James, 2024. "Artificial intelligence, firm growth, and product innovation," Journal of Financial Economics, Elsevier, vol. 151(C).
    37. David H. Autor, 2015. "Why Are There Still So Many Jobs? The History and Future of Workplace Automation," Journal of Economic Perspectives, American Economic Association, vol. 29(3), pages 3-30, Summer.
    38. David J. Teece, 2007. "Explicating dynamic capabilities: the nature and microfoundations of (sustainable) enterprise performance," Strategic Management Journal, Wiley Blackwell, vol. 28(13), pages 1319-1350, December.
    39. Reinhilde Veugelers & Annalisa Ferrando & Senad Lekpek & Christoph T. Weiss, 2019. "Young SMEs as a Motor of Europe’s Innovation Machine," Intereconomics: Review of European Economic Policy, Springer;ZBW - Leibniz Information Centre for Economics;Centre for European Policy Studies (CEPS), vol. 54(6), pages 369-377, November.
    40. Carlaw, Kenneth I. & Lipsey, Richard G., 2002. "Externalities, technological complementarities and sustained economic growth," Research Policy, Elsevier, vol. 31(8-9), pages 1305-1315, December.
    41. Camiña, Ester & Díaz-Chao, Ángel & Torrent-Sellens, Joan, 2020. "Automation technologies: Long-term effects for Spanish industrial firms," Technological Forecasting and Social Change, Elsevier, vol. 151(C).
    42. Bahoo, Salman & Cucculelli, Marco & Qamar, Dawood, 2023. "Artificial intelligence and corporate innovation: A review and research agenda," Technological Forecasting and Social Change, Elsevier, vol. 188(C).
    43. Soluk, Jonas & Decker-Lange, Carolin & Hack, Andreas, 2023. "Small steps for the big hit: A dynamic capabilities perspective on business networks and non-disruptive digital technologies in SMEs," Technological Forecasting and Social Change, Elsevier, vol. 191(C).
    44. André Hanelt & René Bohnsack & David Marz & Cláudia Antunes Marante, 2021. "A Systematic Review of the Literature on Digital Transformation: Insights and Implications for Strategy and Organizational Change," Journal of Management Studies, Wiley Blackwell, vol. 58(5), pages 1159-1197, July.
    45. Merín-Rodrigáñez, Joan & Dasí, Àngels & Alegre, Joaquín, 2024. "Digital transformation and firm performance in innovative SMEs: The mediating role of business model innovation," Technovation, Elsevier, vol. 134(C).
    46. Battistoni, Elisa & Gitto, Simone & Murgia, Gianluca & Campisi, Domenico, 2023. "Adoption paths of digital transformation in manufacturing SME," International Journal of Production Economics, Elsevier, vol. 255(C).
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Zhou, Yuwen & Shi, Xin, 2025. "How does digital technology adoption affect corporate employment? Evidence from China," Economic Modelling, Elsevier, vol. 147(C).
    2. Flavio Calvino & Luca Fontanelli, 2025. "Decoding AI: Nine facts about how firms use artificial intelligence in France," LEM Papers Series 2025/13, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy.
    3. Egana-delSol, Pablo & Bravo-Ortega, Claudio, 2025. "Artificial Intelligence and Labor Market Transformations in Latin America," IZA Discussion Papers 17746, Institute of Labor Economics (IZA).
    4. Jasmine Mondolo, 2022. "The composite link between technological change and employment: A survey of the literature," Journal of Economic Surveys, Wiley Blackwell, vol. 36(4), pages 1027-1068, September.
    5. Agustí Segarra‐Blasco & Mercedes Teruel & Josep Tomàs‐Porres, 2024. "Circular economy and public policies: A dynamic analysis for European SMEs," Business Strategy and the Environment, Wiley Blackwell, vol. 33(4), pages 3532-3549, May.
    6. Richard Gates, 2006. "A Mata Geweke–Hajivassiliou–Keane multivariate normal simulator," Stata Journal, StataCorp LLC, vol. 6(2), pages 190-213, June.
    7. Parteka, Aleksandra & Kordalska, Aleksandra, 2023. "Artificial intelligence and productivity: global evidence from AI patent and bibliometric data," Technovation, Elsevier, vol. 125(C).
    8. Arntz, Melanie & Gregory, Terry & Zierahn-Weilage, Ulrich, 2019. "Digitalization and the Future of Work: Macroeconomic Consequences," IZA Discussion Papers 12428, Institute of Labor Economics (IZA).
    9. Daron Acemoglu & Pascual Restrepo, 2020. "The wrong kind of AI? Artificial intelligence and the future of labour demand," Cambridge Journal of Regions, Economy and Society, Cambridge Political Economy Society, vol. 13(1), pages 25-35.
    10. Xueyuan Gao & Hua Feng, 2023. "AI-Driven Productivity Gains: Artificial Intelligence and Firm Productivity," Sustainability, MDPI, vol. 15(11), pages 1-21, June.
    11. Vitaliy Roud & Valeriya Vlasova, 2016. "Firm-Level Evidence on the Cooperative Innovation Strategies in Russian Manufacturing," HSE Working papers WP BRP 63/STI/2016, National Research University Higher School of Economics.
    12. Cao, Yuanyuan & Chen, Shaojian & Tang, Heyan, 2025. "Robot adoption and firm export: Evidence from China," Technological Forecasting and Social Change, Elsevier, vol. 210(C).
    13. Wu, Yifan & Yuan, Yiming & Song, Xueyin, 2025. "The impact of AI adoption on R&D productivity: Evidence from Chinese pharmaceutical manufacturing industry," Journal of Asian Economics, Elsevier, vol. 97(C).
    14. Zhou, Huilin & Wang, Linhui & Cao, Yutong & Li, Jincheng, 2025. "The impact of artificial intelligence on labor market: A study based on bibliometric analysis," Journal of Asian Economics, Elsevier, vol. 98(C).
    15. Damioli, Giacomo & Van Roy, Vincent & Vertesy, Daniel & Vivarelli, Marco, 2025. "Is artificial intelligence leading to a new technological paradigm?," Structural Change and Economic Dynamics, Elsevier, vol. 72(C), pages 347-359.
    16. Cao, Yuqiang & Hu, Yong & Liu, Qian & Lu, Meiting & Shan, Yaowen, 2023. "Job creation or disruption? Unraveling the effects of smart city construction on corporate employment in China," Technological Forecasting and Social Change, Elsevier, vol. 195(C).
    17. Ryosuke Shimizu & Shohei Momoda, 2020. "Does Automation Technology increase Wage?," KIER Working Papers 1039, Kyoto University, Institute of Economic Research.
    18. Cristian Barra & Nazzareno Ruggiero, 2023. "Quality of Government and Types of Innovation—Empirical Evidence for Italian Manufacturing Firms," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 14(2), pages 1749-1789, June.
    19. Hideki Nakamura & Joseph Zeira, 2024. "Automation and unemployment: help is on the way," Journal of Economic Growth, Springer, vol. 29(2), pages 215-250, June.
    20. David Roodman, 2011. "Fitting fully observed recursive mixed-process models with cmp," Stata Journal, StataCorp LLC, vol. 11(2), pages 159-206, June.

    More about this item

    Keywords

    ;
    ;
    ;
    ;

    JEL classification:

    • O14 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

    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:kap:sbusec:v:65:y:2025:i:1:d:10.1007_s11187-025-01017-2. See general information about how to correct material in RePEc.

    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.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with 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.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

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

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.