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Traditional SMEs and innovation: the role of the industrial policy in Italy

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  • Secondo Rolfo
  • Giuseppe Calabrese

Abstract

The aim of this paper is two-fold. First, it analyses the Italian aid programmes for innovation and technology and, in particular, the role of the regions in view of the recent legislative framework. The second aim is to match the needs of Italian SMEs for technological innovation with the state and regional aid programmes. Two empirical research programmes carried out at Ceris-CNR (Institute of Economic Research on Firms and Growth - Italian National Research Council) confirmed that the Italian SMEs' approach to innovation tends to meet the demand of the existing market through incremental processes. The most common way of introducing new technology is by purchasing new machines and equipment to reduce costs and improve quality. All industrialized countries tend to favour the linking of SMEs with external sources of knowledge. The paper shows that in Italy such a policy clashes with the capacity of SMEs for absorbing innovation. Most of them lack the technical structures (technical office, design department, R&D laboratory, prototype department, etc.) and the graduate staff capable of interacting with the research bodies.

Suggested Citation

  • Secondo Rolfo & Giuseppe Calabrese, 2003. "Traditional SMEs and innovation: the role of the industrial policy in Italy," Entrepreneurship & Regional Development, Taylor & Francis Journals, vol. 15(3), pages 253-271, July.
    • Handle: RePEc:taf:entreg:v:15:y:2003:i:3:p:253-271
    DOI: 10.1080/08985620210158401
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    Cited by:

    1. Cassey Lee & Lee Chew ging, 2007. "SME Innovation in the Malaysian Manufacturing Sector," Economics Bulletin, AccessEcon, vol. 12(30), pages 1-12.
    2. Nader Ale Ebrahim & Shamsuddin Ahmed & Zahari Taha, 2010. "SMEs; Virtual Research and Development (R&D) Teams and New Product Development: A Literature Review," Post-Print hal-00593362, HAL.
    3. Joaquín M. Azagra-Caro & Dimitrios Pontikakis & Attila Varga, 2013. "Delocalization Patterns in University--Industry Interaction: Evidence from the Sixth R&D Framework Programme," European Planning Studies, Taylor & Francis Journals, vol. 21(10), pages 1676-1701, October.
    4. Nader Ale Ebrahim & Shamsuddin Ahmed & Zahari Taha, 2009. "Virtual R & D teams in small and medium enterprises: A literature review," Post-Print hal-00593358, HAL.
    5. Sitkevich, Daniil A. (Ситкевич, Даниил), 2020. "Industrial Policy in Underdeveloped Regions: Lessons from Mezzogiorno [Индустриальная Политика В Экономически Отсталых Регионах: Уроки Меццоджорно]," Ekonomicheskaya Politika / Economic Policy, Russian Presidential Academy of National Economy and Public Administration, vol. 1, pages 136-159, February.
    6. Marco Mariani & Fabrizia Mealli, 2018. "The Effects of R&D Subsidies to Small and Medium-Sized Enterprises. Evidence from a Regional Program," Italian Economic Journal: A Continuation of Rivista Italiana degli Economisti and Giornale degli Economisti, Springer;Società Italiana degli Economisti (Italian Economic Association), vol. 4(2), pages 249-281, July.
    7. Bonilla, George J.J. & Dietlmeier, Simon Frederic & Urmetzer, Florian, 2023. "Multi-Stakeholder Ecosystem for Standardization of AI in Industry," MPRA Paper 120619, University Library of Munich, Germany.
    8. Carmen Otero-Neira & Mª Jesús Fernández Arias & Martti Tapio Lindman, 2013. "Market Orientation and Entrepreneurial Proclivity: Antecedents of Innovation," Global Business Review, International Management Institute, vol. 14(3), pages 385-395, September.
    9. Jukka Partanen & Sylvie K. Chetty & Arto Rajala, 2014. "Innovation Types and Network Relationships," Entrepreneurship Theory and Practice, , vol. 38(5), pages 1027-1055, September.
    10. Annalisa Caloffi & Marco Mariani, 2018. "Regional policy mixes for enterprise and innovation: A fuzzy-set clustering approach," Environment and Planning C, , vol. 36(1), pages 28-46, February.
    11. Chiara Verbano & Karen Venturini & Giorgio Petroni & Anna Nosella, 2008. "Characteristics of Italian art restoration firms and factors influencing their adoption of laser technology," Journal of Cultural Economics, Springer;The Association for Cultural Economics International, vol. 32(1), pages 3-34, March.
    12. Ronen Harel & Dafna Schwartz & Dan Kaufmann, 2021. "The relationship between innovation promotion processes and small business success: the role of managers’ dominance," Review of Managerial Science, Springer, vol. 15(7), pages 1937-1960, October.
    13. Andrés Barge-Gil & Aurelia Modrego, 2011. "The impact of research and technology organizations on firm competitiveness. Measurement and determinants," The Journal of Technology Transfer, Springer, vol. 36(1), pages 61-83, February.
    14. Ugo Finardi, 2014. "Insights on the efficiency of Embodied Knowledge Transfer: results from a localized initiative," CERIS Working Paper 201419, CNR-IRCrES Research Institute on Sustainable Economic Growth - Torino (TO) ITALY - former Institute for Economic Research on Firms and Growth - Moncalieri (TO) ITALY.
    15. Luis Javier Garcia-Martinez & Sascha Kraus & Matthias Breier & Andreas Kallmuenzer, 2023. "Untangling the relationship between small and medium-sized enterprises and growth: a review of extant literature," International Entrepreneurship and Management Journal, Springer, vol. 19(2), pages 455-479, June.

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