Supporting the diffusion of innovative SMEs: the Italian experience

Innovative SMEs are believed to be of fundamental importance for a territorial context's social and economic development. Countries have adopted many policies to favour the diffusion of innovative SMEs, even if the results often appear contradictory. This study verifies the effectiveness of a specific decree-law encouraging entrepreneurs to open up their businesses to systematic innovations by analysing the financial and economic performances obtained by 617 innovative SMEs in the five-year period 2016-2020. Findings reveal that most SMEs who benefited from the measures envisaged by the decree achieved an acceptable situation, with valid profitability and a bearable financial and economic balance. The main implication of this study is that the polarisation of support measures on the enhancement of human resource skills can be at least as important as sources for access to financial resources.