Innovation support for traditional business
Innovation is flourishing in Europe, but many small and medium-sized enterprises (SMEs) are finding it difficult to embrace the knowledge economy. The EU-funded project GPRIX sought to address this challenge. Project partners studied innovation support for SMEs in traditional industries (e.g. automotive, textiles, leather, food, metallurgy) to identify specific measures that can help local economic communities prosper. They examined the effectiveness of innovation measures in seven European regions, covering Germany, Spain, France, Italy, the Netherlands, Portugal and the United Kingdom. After in-depth quantitative and qualitative analyses, the project team identified differences and similarities among the regions, mapping the impact of research and innovation support programmes in Europe. Once this was achieved, the team prepared recommendations to help policymakers and programme designers upgrade innovation support for traditional industries. Among these recommendations, it called on stakeholders to support innovation based not only on technological research and development (R&D) but also on non-technological considerations in line with traditional sectors' needs. Other recommendations highlighted the need for institutional stability in providing support programmes and encouraging export promotion programmes. Noteworthy as well is the project's recommendation to extend innovation support to business groups, noting that many manufacturing enterprises belong to groups of related businesses. Importantly, the project team cautioned against 'cherry picking' SMEs to offer joint support programmes as this had proven to be a counterproductive approach in overall innovation results. Instead, GPRIX called on stakeholders to evaluate all major innovation support programmes based on best practice and to reform the selection process of firms chosen for innovation support programmes. If implemented, these recommendations and guidelines are expected to help upgrade innovation support significantly. In turn, this will bring positive change to SMEs in traditional sectors, focusing on those who need it the most. These traditional sectors could become more competitive and help boost Europe's economy in a myriad of ways, taking their place in the EU's rapidly growing knowledge economy.
