Only One in Ten SMEs Invests in Research and Development

A new analysis has found that only about one in ten small and medium-sized enterprises invests in research and development, raising concerns about innovation and long-term competitiveness.

The report highlights that many SMEs focus primarily on short-term operational needs rather than investing in new products, processes or technologies. Limited financial resources and uncertainty about returns on investment were identified as major barriers to R&D spending.

Economists warn that low levels of innovation could affect productivity growth and reduce the ability of smaller businesses to compete in increasingly technology-driven markets.

The findings have renewed calls for stronger policy support, incentives and financing mechanisms to encourage innovation among SMEs.

Source: Il Sole 24 Ore