Get 20M+ Full-Text Papers For Less Than $1.50/day. Start a 14-Day Trial for You or Your Team.

Learn More →

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

Can Fast Growing R&D-Intensive Smes Affect the Economic Structure of the Eu Economy?: A... 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. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Eurasian Business Review Springer Journals

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

Download PDF
33 pages

Loading next page...
 
/lp/springer-journals/can-fast-growing-r-d-intensive-smes-affect-the-economic-structure-of-7YD2vyyb7n
Publisher
Springer Journals
Copyright
Copyright © 2012 by Eurasia Business and Economics Society
Subject
Economics / Management Science; Business/Management Science, general
ISSN
1309-4297
eISSN
2147-4281
DOI
10.14208/BF03353814
Publisher site
See Article on Publisher Site

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.

Journal

Eurasian Business Review – Springer Journals

Published: Aug 27, 2014

References

  • Innovation and Small Firms
    Acs, ZJ
  • Employment effects of business dynamics: Mice, Gazelles and Elephants
    Acs, ZJ; Mueller, P
  • Data on business R&D: Comparing BERD and the Scoreboard
    Azagra Caro, JM; Grablowitz, A
  • Firm size, innovation dynamics and growth: A reduced form analysis (Chapter 2 in Essays on Growth and Innovation Policies)
    Akcigit, U
  • Entrepreneurship, innovation and economic growth
    Audretsch, DB
  • Produce Dynamics: New Evidence from Micro Data
    Bartelsman, E; Haltiwanger, J; Scarpetta, S
  • A 3 % R&D effort in Europe in 2010: An analysis of the consequences, using the Nemesis model
    Brécard, D; Chevallier, C; Fougeyrollas, A; Mouël, P; Lemiale, L; Zagamé, P
  • Innovation and employment: A firm level analysis with European R&D Scoreboard data
    Bogliacino, F
  • Global entrepreneurship monitor — 2009 Global Report
    Bosma, N; Levie, J
  • Exploring firm growth across countries
    Bravo-Biosca, A
  • Creative destruction and development: Institutions, crises, and restructuring
    Caballero, RJ; Hammour, ML
  • Does size or age of innovative companies affect their growth persistence? Evidence from a Spanish panel of innovative firms
    Ciriaci, D; Moncada-Paternò-Castello, P; Voigt, P
  • Firm growth: Empirical analysis
    Coad, A; Hölzl, W
  • Disentangling the R&D shortfall of the EU vis-á-vis the US
    Erken, H; Es, F
  • SMEs in STREPs under FP6
  • JRC Scientific and Technical Research Series — JRC-IPTS
  • European Commission DG JRC-IPTS
    Gardiner, B
  • Documenting data on high-growth firms and entrepreneurs across 17 countries
    Hoffmann, AN; Junge, M
  • Benchmarking of small and medium size firms for twenty selected countries — Construction of growth indicators
    Junge, M; Ulrich, K
  • Linear prediction: A tutorial review
    Makhoul, J
  • A Note on the drivers of R&D intensity
    Mathieu, A; Pottelsberghe de la Potterie, B
  • Introduction to a special issue: New insights on EU-US comparison of corporate R&D
    Moncada-Paternò-Castello, P
  • Companies’ growth in the EU: What is research and innovation policy’s role?
    Moncada-Paternò-Castello, P
  • Does Europe perform too little corporate R&D? A comparison of EU and non-EU corporate R&D performance
    Moncada-Paterno-Castello, P; Ciupagea, C; Smith, K; Tübke, A; Tubbs, M
  • Oslo Manual — Guidelines for Collecting and Interpreting Innovation Data
  • R&D-intensive SMEs in Europe: What do we know about them?
    Ortega-Argilés, R; Potters, L; Voigt, P
  • The Oxford Handbook of Innovation
    Pianta, M
  • The theory of economic development
    Schumpeter, JA
  • Linear prediction theory: A mathematical basis for adaptive systems
    Strobach, P
  • Growth through research and development — What does the research literature say?
    Svensson, R
  • Innovation, firm size and market structure: Schumpeterian hypotheses and some new themes
    Symeonidis, G
  • Determinants of high-growth firms: Why have some countries more high-growth firms than others?
    Teruel, M; Wit, G
  • ICT and productivity in Europe and the United States where do the differences come from?
    Ark, B; Inklaar, R; McGuckin, RH
  • Why has Britain had slower R&D growth?
    Reenen, JM