IDEAS home Printed from https://ideas.repec.org/a/spr/eurasi/v2y2012i2p96-128.html
   My bibliography  Save this article

Can Fast Growing R&D-Intensive Smes Affect the Economic Structure of the Eu Economy?: A Projection to the Year 2020

Author

Listed:
  • Peter Voigt

    ()

  • Pietro Moncada-Paternò-Castello

    ()

Abstract

The paper investigates how would sector composition and the magnitude of R&D investments in the EU differ in year 2020 compared to the past, if a selection of top R&D-investing SMEs were assumed to be on a fast growth track while the top R&D-investing large scale companies continued to grow as before. Background of this research objective is the emerging focus on SMEs — and in particular the fast growing among them — with regard to the “Europe 2020” policy strategy. The study relies on the sample of top R&D-investing firms as given by the latest available “EU Industrial R&D Investment Scoreboard” editions, building from it an unbalanced panel. Scenarios were developed by distinguishing SMEs’ assumed growth paths vs. that of large scale companies. A linear prediction model has been used to compute the simulation. Overall, the study indicates that if one expects the (R&D-intensive) small firms to be a driving force for a substantial structural change in the EU economy, from being driven by rather medium-tech sectors towards a high-tech based economy, it requires either a significant longer time horizon of the assumed fast growth track than the simulated 10 years, or small firms’ growth figures which even exceed the assumed 30% annually (as in the most optimistic scenario). Neither case appears to be particularly realistic. Hence, we need more top R&D investors in Europe to further intensify their engagement in R&D (increasing volume and R&D intensity) as well as numerous small firms that start and/or significantly increase their existing R&D activities and thus seek to become large firms and (global) leading R&D investors. Accordingly, a broad R&D and innovation (policy) strategy is needed with policy interventions which also target well all these options; i.e. stimulating firm growth and R&D and innovation-intensity across firm-sized classes. Copyright Eurasia Business and Economics Society 2012

Suggested Citation

  • Peter Voigt & Pietro Moncada-Paternò-Castello, 2012. "Can Fast Growing R&D-Intensive Smes Affect the Economic Structure of the Eu Economy?: A Projection to the Year 2020," Eurasian Business Review, Springer;Eurasia Business and Economics Society, vol. 2(2), pages 96-128, December.
  • Handle: RePEc:spr:eurasi:v:2:y:2012:i:2:p:96-128
    DOI: 10.14208/BF03353814
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.14208/BF03353814
    Download Restriction: Access to full text is restricted to subscribers.

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Bart van Ark & Robert Inklaar & Robert H. McGuckin, 2003. "ICT and Productivity in Europe and the United States Where Do the Differences Come From?," CESifo Economic Studies, CESifo, vol. 49(3), pages 295-318.
    2. Moncada-Paternò-Castello, Pietro & Ciupagea, Constantin & Smith, Keith & Tübke, Alexander & Tubbs, Mike, 2010. "Does Europe perform too little corporate R&D? A comparison of EU and non-EU corporate R&D performance," Research Policy, Elsevier, vol. 39(4), pages 523-536, May.
    3. Zoltán J. Ács & Pamela Mueller, 2015. "Employment effects of business dynamics: Mice, Gazelles and Elephants," Chapters, in: Global Entrepreneurship, Institutions and Incentives, chapter 16, pages 304-319, Edward Elgar Publishing.
    4. Daria Ciriaci & Pietro Moncada-Paterno-Castello & Peter Voigt, 2012. "Does size or age of innovative firms affect their growth persistence? Evidence from a panel of innovative Spanish firms," JRC Working Papers JRC74052, Joint Research Centre (Seville site).
    5. Van Reenen, John, 1997. "Why has Britain had slower R&D growth?," Research Policy, Elsevier, vol. 26(4-5), pages 493-507, December.
    6. Azele Mathieu & Bruno van Pottelsberghe de la Potterie, 2010. "A Note on the Drivers of R&D Intensity," Research in World Economy, Research in World Economy, Sciedu Press, vol. 1(1), pages 56-65, November.
    7. Ricardo J. Caballero & Mohamad L. Hammour, 2000. "Creative Destruction and Development: Institutions, Crises, and Restructuring," NBER Working Papers 7849, National Bureau of Economic Research, Inc.
    8. Zoltan Acs & David Audretsch, 1990. "Innovation and Small Firms," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262011131.
    9. Raquel Ortega-Argilés & Lesley Potters & Peter Voigt, 2009. "R&D-intensive SMEs in Europe: What do we know about them?," JRC Working Papers on Corporate R&D and Innovation 2009-15, Joint Research Centre (Seville site).
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Francesco Quatraro & Marco Vivarelli, 2015. "Drivers of Entrepreneurship and Post-entry Performance of Newborn Firms in Developing Countries," World Bank Research Observer, World Bank Group, vol. 30(2), pages 277-305.
    2. repec:hur:ijaraf:v:8:y:2018:i:2:p:102-112 is not listed on IDEAS
    3. Anabela Santos & Paulo Neto & Maria Manuel Serrano, 2016. "A long-term mortality analysis of subsidized firms in rural areas: an empirical study in the Portuguese Alentejo region," Eurasian Economic Review, Springer;Eurasia Business and Economics Society, vol. 6(1), pages 125-151, April.
    4. Graziella Bonanno, 2016. "ICT and R&D as inputs or efficiency determinants? Analysing Italian manufacturing firms (2007–2009)," Eurasian Business Review, Springer;Eurasia Business and Economics Society, vol. 6(3), pages 383-404, December.
    5. repec:rsr:supplm:v:65:y:2017:i:10:p:14-24 is not listed on IDEAS
    6. repec:rsr:supplm:v:65:y:2017:i:9:p:17-30 is not listed on IDEAS
    7. Getinet Haile & Ilina Srour & Marco Vivarelli, 2014. "Globalization and Technology Transfer in Ethiopia: Their Impact on Domestic Employment and Skills," DISCE - Quaderni del Dipartimento di Scienze Economiche e Sociali dises1498, Università Cattolica del Sacro Cuore, Dipartimenti e Istituti di Scienze Economiche (DISCE).

    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:spr:eurasi:v:2:y:2012:i:2:p:96-128. 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: (Sonal Shukla) or (Springer Nature Abstracting and Indexing). General contact details of provider: http://www.springer.com .

    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 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.

    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.