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Small and medium size enterprises: innovation and growth in the UK and Poland

Author

Listed:
  • Ghatak, Subrata

    (Kingston University London)

  • Watkins, Rob

    (Kingston University London)

Abstract

This work highlights and compares some of the more recent studies and information regarding SMEs in Poland and the UK. In particular it focuses on the SME relationship with innovation, which can be a key concept in addressing questions of competitive advantage and increasing economic output. There is support for the assumption that medium and fast growth firms are more likely to innovate. This study considers aspects affecting SME growth such as age of organisation, institutional support services, and barriers to growth. Other identified variables relating to the likelihood of SME innovation include; type of activity and the constraint of capital in selecting an activity, differences between older and newer firms and the effect of the firm’s size. Firm size influences are then looked at in relation to initial capital, personal background of entrepreneurs, education of entrepreneurs, the privatisation programme, enterprise lifespan and the possible effects of the informal sector. Recent analysis on obtaining better innovation grouping by the use of alternative industrial groupings is identified, as well as the use of cluster analysis to identify potential innovators by reference to their input characteristics. Further factors that are looked at include the effect of greater intermediation in a region, knowledge transfer from public R&D and Universities, the effect of incubators and technology centres, R&D, and growth in technical consultancy. The two countries’ SME sectors are compared with regard to size, structure and growth. Importance and growth are measured in terms of number of enterprises, their output and the employment they provide. The disaggregation of SME activity, using the European Classification of Activities, gives an initial identification of some sectors where SME operation is most prevalent, is changing dramatically or appears likely to change.

Suggested Citation

  • Ghatak, Subrata & Watkins, Rob, 2001. "Small and medium size enterprises: innovation and growth in the UK and Poland," Economics Discussion Papers 2001-3, School of Economics, Kingston University London.
  • Handle: RePEc:ris:kngedp:2001_003
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    References listed on IDEAS

    as
    1. Alan Hughes & Eric Wood, 1999. "Rerthinking Innovation Comparisons between Manufacturing and Services: The Experience of the CBR SME Surveys in the UK," Working Papers wp140, Centre for Business Research, University of Cambridge.
    2. Suma Athreye & David Keeble, 2002. "Sources of Increasing Returns and Regional Innovation in the UK," Regional Studies, Taylor & Francis Journals, vol. 36(4), pages 345-357.
    3. David A. Kirby & Dylan Jones-Evans & Peter Futo & Stefan Kwiatkowski & Joachim Schwalbach, 1996. "Technical Consultancy in Hungary, Poland, and the UK: A Comparative Study of an Emerging Form of Entrepreneurship," Entrepreneurship Theory and Practice, , vol. 20(4), pages 9-24, July.
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    More about this item

    Keywords

    SME; UK; Poland; Innovation; Growth; Small firms; Micro firms; Medium firms;
    All these keywords.

    JEL classification:

    • M13 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - New Firms; Startups
    • R10 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - General

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