The Europe 2020 Strategy sees micro and small & medium-sized enterprises (SMEs) as the backbone of the European Union’s drive towards a smart, sustainable, inclusive, and growing economy. Diogo Ferraz and Elisabeth Pereira of the Department of Economics, Management, Industrial Engineering and Tourism (DEGEIT), at the University of Aveiro, Portugal, address the question as to the role of small knowledge intensive firms in the EU in this context.
Writing in the International Journal of Knowledge-Based Development, the team explain how they have investigated the relationship between a set of variables that characterises small knowledge-intensive firms and gross domestic product (GDP). They have also looked at the importance of business expenditure on research and development. The research involved analyzing econometrics across 24 EU member states for the period 2008 to 2012 using panel data and cluster analysis. The team found that those nations with high growth values in such companies also have the biggest growth in GDP R&D expenditure.
The team’s findings lend support to the strategic decisions of Europe 2020 Strategy, they explain, reinforcing the relevance of SMEs as a key driver for economic growth, innovation, employment, and social integration. The researchers add that, “The relevance assumed by the European Commission about SMEs and the strategy of a competitive European economy based on smart, sustainable and inclusive growth leads to the importance of small knowledge-intensive firm in the European context.”
Ferraz, D.E. and Pereira, E.T. (2018) ‘The economic role of small knowledge intensive firms in European member states‘, Int. J. Knowledge-Based Development, Vol. 9, No. 3, pp.221-243.