INNOVATION OF THE SME SECTOR IN POLAND AND ITALY

Abstract

PRESENTATION AND PURPOSE OF THE STUDY. The SME sector is the backbone of the economies of both Poland and Italy. In Poland, the SME sector comprises more than 2.2 million enterprises, accounting for around 99.8% of all active businesses, while in Italy, the SME sector comprises around 4.4 million enterprises. Italy is one of the countries in the European Union with the most significant number of SMEs. Micro-enterprises dominate the SME structure in both countries. They generate a significant percentage of exports. In the case of Poland, this is about 30% of the total value of exports, and in the case of Italy, this sector accounts for more than 52% of the country's total exports. Innovation is critical for SMEs to survive and grow in a highly competitive environment. Supporting innovation in the SME sector is essential, especially given the natural barriers these businesses face.

This article compares approaches to innovation in SMEs in Poland and Italy.

RESEARCH METHODS. The paper uses a literature analysis method. The paper reviews the literature on the topic and innovativeness of the SME sector in Poland and Italy. The selection of literature made it possible to compare the importance and innovativeness of this sector in both countries.

THE RESULTS. The literature analysis has shown that SMEs are the backbone of the economy in Poland and Italy, but their role in innovation varies. In both countries, access to finance is one of the biggest obstacles to SME innovation activities. In both countries, there is a problem of a mismatch between the qualifications of employees and market needs, which limits the ability of SMEs to innovate.

CONCLUSIONS. Poland and Italy should adopt new systemic solutions to support their SME sectors better. They should improve the conditions for innovation development in this sector.

KEYWORDS: innovation; SME sector; importance of SMEs; SME in Poland; SME in Italy.