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Competitiveness and Innovation Performance of SMEs in the New EU Member States: The Case of Croatia

The system of innovation largely affects the business competitiveness and innovation performance of SMEs across the EU. This paper aims to shed further light on how public funding policies (from different funding sources, e.g., national and EU R&I) work in practice and their impact on behavioral patterns of SMEs as important innovation actors and conduits. In addition, some insights could be relevant for policymakers, particular in relation to how SMEs respond to funding and how funding affects their R&I investment decisions and performance. The authors will rely on the European Innovation Scoreboard and other empirical sources (Community Innovation Surveys of 2012 and 2014) to identify trends in SME R&I funding, performance, and the intensity of their innovation collaboration. The analyses will also explore the roles and capabilities of SMEs as actors in the innovation system (e.g., science-based innovators vs. supply-chain innovators). In addition, we will explore SMEs’ interactions with other important actors in the innovation system and identify conditions and obstacles stemming from the system. In conclusion, we will assess the strengths and weaknesses of the innovation system for SMEs’ business competitiveness and the specific effects on SME innovation activities in Croatia and a selection of new EU member states.

SMEs, innovation, research, EU R&I funding, EU member states, Croatia

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