The study shows that continuous innovators are most likely to be medium in size, and focused on EU and global markets rather than local and national ones. These successful businesses perceive their markets as fast growing and enjoy large research budgets. More importantly, continuous innovators are more likely to declare high or medium profitability growth. These SMEs are also keener to introduce multiple innovations, combining new ideas in product and services, as well as organisational, marketing and process innovation. The study demonstrates the link between highly innovative enterprises and better performance, confirming the conclusions found in the economic literature regarding the relevance of innovation strategies for competitiveness.
The relevance of knowledge and skills to successful business strategies for SMEs was demonstrated by identifying human resources as the main factor in success. The lack of financial capital was identified as a major obstacle to growth, particularly for smaller SMEs. A further barrier emerging from the study and directly influenced by European policies was the existence of "imperfect market conditions", especially according to larger SMEs. The study indicates that National Reform Reports regarding the Lisbon Strategy towards a knowledge economy do not directly address the promotion of the IT industry. Instead they concentrate on the regulatory framework. The main areas for action include e-government, broadband infrastructure and digital literacy.
According to the report, most countries of the EU-25 have specific policies for ICT SMEs, except for Lithuania, Malta and Poland. However, the Czech Republic, Greece and Cyprus only mention a national ICT innovation framework where SMEs are concerned, but do not appear to have specific measures in place. Most of the policy measures quoted fall into the traditional field of R&D and innovation policy, rather than industrial policy, while R&D funding and technical transfer and networking are the most diffused instruments. Policies for regional or technical clusters are scarce, as are policies targeting the main barriers identified by ICT SMEs i.e. a lack of human and financial resources.
Venture capital schemes are currently being implemented by those countries with an advanced and competitive ICT industry, including Denmark, Finland, Sweden and the UK. The Member States with a strong and competitive ICT industry enjoy a tradition of proactive policies for ICT SMEs development which are characterised by initiatives that promote continuity and regional development.
http://ec.europa.eu/research/headlines/news/article_07_11_28_en.html