Are SMEs driving research, development and innovation?

Digitalisation and innovation

Are SMEs driving research, development and innovation?

.In a comparison of economic sectors, internal spending on research and development (R&D) is concentrated primarily in manufacturing.

.SMEs play a key role in keeping the German innovation system fit for the future. The industrial SME sector is characterized by lively patenting activities, good connections to the scientific community and an overall high level of research intensity.

.In an international comparison, Germany is still among the international innovation leaders, ranking fourth in the Innovation Indicator 2020 (BDI 2020b). However, Germany risks to fall behind its main competitors if the environment for innovation does not improve consistently – particularly in the areas of technology-neutral investment, funding in R&D, digital infrastructure and attracting skilled labor.

Internal R&D expenditure in Germany by company size

Source: IfM Bonn (2017)

SME: up to 499 employees Large companies: 500 and more employees

in million euros

36184 38924 37946 39375 42792 45440 45728 49027 SME share in percent

52869 54565 59902

15.9 15.5 16.2 16.1 16.2 15.5 14.6 14.0 13.3 13.1 12.9