How effective is innovation support for SMEs? An analysis of the region of Upper Austria

Abstract

SMEs are confronted with particular problems constraining their innovation activities. How their needs are fulfilled by support instruments has been investigated in a recent European research project. The results for the region of Upper Austria lead to the conclusion that some of the support is mistargeted, disregarding certain indicated or latent deficiencies of SMEs: direct financial support concentrates on research and development, neglecting the commercialization of innovations. In general, high-technology innovation projects are preferred, less technologically advanced or innovative firms lack adequate support. The spillover effects of technology centres are limited. The problem that most SMEs hardly interact with knowledge providers from outside the business sector (e.g., universities) is not reduced by the support instruments. Furthermore, they perform insufficiently the function of interfaces to innovation-related resources and information from outside the region. There is a lack of proactive consultancy concerning strategic, organizational, and technological weaknesses which is necessary because often the firms are not aware of such deficiencies.