This thesis studies the involvement of small and medium-sized enterprises (SMEs) in publicly funded research and development (R&D) projects. SMEs represent 99% of all companies in Europe and are important drivers of innovation, yet many lack the necessary resources to engage in formal research activities. Providing these firms with the possibility to make use of public funding programmes for R&D projects therefore constitutes a way of stimulating them to innovate. Reviews of such programmes, however, show that SME participation is frequently lower than desired by policy makers. This raises the question of the benefits SMEs can gain from such projects and the barriers that negatively influence their ability to participate. The author hypothesises that taking part in publicly funded R&D projects can positively influence an SME's competitiveness through a specific set of advantages gained from participation. The second hypothesis is that companies with previous experience in such projects evaluate their participation positively. Finally, the author puts forward that a number of specific barriers limit SMEs' ability to participate. The hypotheses were tested by means of an online survey among Swiss SMEs in the field of renewable energy, as well as interviews with representatives of national and EU funding bodies. The results support all three hypotheses and confirm the importance of the public measures. Participation in publicly funded R&D projects can indeed have positive impacts on an SME's competitiveness. Also, companies tend to evaluate their participation positively. SMEs with previous experience in such projects were well-informed about the specifics of a participation prior to filing an application, whereas a substantial lack of information exists on the part of companies without previous experience. This study adds to the existing pool of literature on SME competitiveness, and through its narrow focus addresses a very specific area where little research has been conducted to date. As such, the thesis is of relevance to the business, research, and political communities.
Table of Contents
1 Introduction
2 Review of selected theories on firm competitiveness
2.1 General aspects
2.2 Industrial organisation view
2.3 Resource-based view of the firm
2.4 Dynamic capabilities
2.5 Knowledge-based view of the firm
3 R&D funding in Switzerland
3.1 General aspects
3.1.1 Switzerland as a research location
3.1.2 Relevant Swiss research promoting institutions
3.1.3 SME specific issues
3.2 Funding programmes of the SFOE
3.2.1 Hydropower research
3.2.2 Biomass and Wood energy research
3.2.3 Photovoltaics research
3.2.4 Solar heat and heat storage research
3.2.5 Wind energy research
3.2.6 Heat pumping technologies, cogeneration, refrigeration research
3.2.7 Indirect support of geothermal energy
3.3 Funding by the CTI
3.3.1 R&D projects
3.3.2 The CTI "Innovationsscheck"
3.3.3 Feasibility studies
4 R&D funding at the European level
4.1 General aspects
4.1.1 Europe as a research location
4.1.2 Relevant EU research promoting instruments
4.1.3 SME specific issues
4.2 7th Framework Programme for Research and Technological Development
4.2.1 FP7-Cooperation-ENERGY
4.2.2 FP7-Cooperation-ENVIRONMENT
4.2.3 FP7-Capacities-Research for the benefit of SMEs
4.3 EUREKA
4.4 EUREKA Eurostars
5 Potential benefits of and barriers to participation for SMEs
5.1 Benefits
5.1.1 Reduced time-to-market for a product
5.1.2 Outsourcing of R&D
5.1.3 Financing a demonstration or prototype project
5.1.4 Acquiring intellectual property rights
5.1.5 Accessing new technological know-how
5.1.6 Expanding the company network
5.1.7 Enhanced company reputation and visibility
5.1.8 Economic impacts
5.2 Barriers
6 Research methodology
6.1 Research questions and hypotheses
6.2 Quantitative research (company survey)
6.2.1 Sampling approach
6.2.2 Collaboration with external organisations
6.2.3 Questionnaire and survey implementation
6.3 Qualitative research (expert interviews with funding bodies)
6.4 Data analysis
7 Research findings
7.1 Response rate
7.2 Previous participation vs. non-participation
7.3 Companies with previous participation
7.3.1 Funding bodies used
7.3.2 Benefits gained from participation
7.3.3 Companies’ evaluation of their participation
7.4 Companies without previous participation
8 Discussion of research findings
8.1 Companies with previous participation
8.1.1 Funding bodies used
8.1.2 Benefits gained from participation
8.1.3 Companies’ evaluation of their participation
8.2 Companies without previous participation
9 Conclusion and recommendations
Research Objectives and Themes
This thesis examines the role of small and medium-sized enterprises (SMEs) in publicly funded research and development (R&D) projects. It aims to determine how such participation impacts an SME's competitiveness, evaluates the experiences of companies that have engaged in these funding programs, and identifies the primary barriers preventing other SMEs from participating.
- The influence of R&D project participation on SME competitiveness
- Benefits and barriers associated with national and EU funding programs
- Evaluation of participation by SMEs with prior experience
- Factors contributing to non-participation among SMEs
- Strategies for improving SME access to funding instruments
Excerpt from the Book
5.1.2 Outsourcing of R&D
The analysis in the previous chapters revealed that several public funding programmes offer companies the possibility to outsource R&D work to universities or other research institutions within the context of a funded project. This provides firms with the important opportunity to obtain research results without having to finance the full cost of the external institution’s services themselves. For SMEs this option may represent an especially important advantage, as they are frequently not in the position to initiate collaborations with a university without external assistance, whereas larger companies usually possess the necessary capacities to establish such partnerships themselves (Swiss Confederation, 2010). Working with research providers within the scope of a funded project usually also brings the companies together with the leading scientists in their field, which may in turn encourage the SMEs to engage in R&D themselves in the future.
Summary of Chapters
1 Introduction: Provides an overview of the energy landscape and the critical role of SMEs in innovation, introducing the research focus on R&D funding for renewable energy.
2 Review of selected theories on firm competitiveness: Discusses core management theories, specifically the industrial organisation view and the resource-based view, to establish a framework for analyzing competitiveness.
3 R&D funding in Switzerland: Examines the Swiss national funding landscape, detailing programs by the SFOE and CTI, and highlights specific issues SMEs face in this environment.
4 R&D funding at the European level: Outlines major EU research instruments, focusing on the 7th Framework Programme (FP7), EUREKA, and Eurostars as key funding avenues for SMEs.
5 Potential benefits of and barriers to participation for SMEs: Categorizes the potential advantages and obstacles that SMEs encounter when seeking or participating in public R&D funding programs.
6 Research methodology: Describes the mixed-methods research design, including the online company survey and expert interviews used to collect data for the analysis.
7 Research findings: Presents the empirical data gathered from the survey, contrasting the experiences of SMEs with and without previous funding participation.
8 Discussion of research findings: Interprets the empirical data in the context of theoretical frameworks and discusses the significance of the findings for different categories of SMEs.
9 Conclusion and recommendations: Summarizes the key insights of the thesis and offers practical recommendations for SMEs and policymakers regarding the use and design of R&D funding programs.
Keywords
SME, Research and Development, R&D Funding, Renewable Energy, Switzerland, Firm Competitiveness, Innovation, Resource-based View, Technology Transfer, Public Funding, Barriers to Participation, SFOE, CTI, FP7, Eurostars.
Frequently Asked Questions
What is the primary focus of this thesis?
This work investigates the impact of participating in publicly funded R&D projects on the competitiveness of Swiss SMEs within the renewable energy sector, as well as the barriers that hinder broader SME participation in such programs.
What are the main thematic areas of the research?
The study centers on three main themes: the relationship between R&D funding and competitiveness, the experiences and evaluation of participating companies, and the obstacles preventing non-participating SMEs from accessing these funds.
What is the primary research question?
The core research question asks how important participation in a publicly funded R&D project is for the competitiveness of the involved SMEs, specifically focusing on the benefits gained and the necessity of public funds for project realization.
Which scientific methods were employed?
The author utilized a mixed-methods approach, combining a quantitative online survey of Swiss SMEs with qualitative semi-structured expert interviews involving representatives from funding organizations.
What does the main body of the work cover?
The main body covers a review of firm competitiveness theories, an introduction to national and European funding programs, a discussion of the potential benefits and barriers for SMEs, and an analysis of both quantitative survey data and expert interview insights.
What are the key keywords characterizing this work?
The work is defined by terms such as SME, R&D funding, renewable energy, competitiveness, innovation, resource-based view, public funding programs, and specific entities like SFOE, CTI, and FP7.
How does the author define the benefits of R&D participation for SMEs?
The author identifies benefits such as reduced time-to-market, outsourcing of R&D, financing for prototypes, acquisition of IP rights, access to technological know-how, and improved networking and reputation.
What is the role of "system competence" in this study?
The author uses the concept of "system competence" to describe a company's ability to recognize, seek out, and successfully navigate public support opportunities, highlighting that a lack thereof is a significant barrier for non-participating SMEs.
Why is the SFOE highly relevant for Swiss SMEs in this context?
The research shows that a significant majority of surveyed SMEs rely on SFOE funding because it offers direct financial support, which differentiates it from other institutions like the CTI that typically fund the research provider rather than the company itself.
- Arbeit zitieren
- MSc, MA Manuel Kaar (Autor:in), 2011, The Impact of Participation in Publicly Funded R&D Projects on Firm Competitiveness, München, GRIN Verlag, https://www.grin.com/document/186773
