The performance of innovative Italian SMEs: a comparative analysis of structural characteristics

Many scholars believe that the presence of innovative SMEs in a territorial context is of fundamental importance for its social and economic development. To this end, in Italy, DL 3/2015 established a special register where SMEs that intend to systematically pursue paths of technological innovation can register. The Decree provides that registered SMEs can obtain a package of advantages and financial facilities in order to mitigate the problems that SMEs usually encounter when trying to undertake the complex and uncertain paths related to the systematic introduction of innovations; starting precisely from the hull of monetary resources and financing capital. Against the above, this paper proposes an analysis of the economic and financial performance achieved by these innovative SMEs during the five-year period 2016-2020; the last year of availability of balance sheet data extracted from the AIDA database. The objective is to verify whether the presence of these supports actually helps SMEs compensate for the increased riskiness associated with the introduction of technological innovations by achieving sound economic and capital performance. To this end, six hypotheses were identified to be tested through the analysis of seven common balance sheet indicators. At the methodological level, the analysis conducted followed two steps. In a first step, the performance of the seven financial and capital ratios was examined with respect to three structural variables (size class, macro-area of location, and macro-sector of membership) considered by most scholars to be largely influential on the same firm performance. In a second step, through the statistical test of analysis of variance (ANOVA) the existence of significant differences between the averages of the indicators considered as a function of the structural variables was then tested. The results of the analysis show that innovative SMEs present a satisfactory situation, with viable profitability and a fair economic and financial balance compared to the average of non-innovative SMEs that do not benefit from the supports offered by this legislation. It is therefore to be assumed that the aforementioned decree is positively manifesting its effects, encouraging many SMEs to open up to technological innovations. Some policy directions also emerge from this study. Among the latter, it seems appropriate for policymakers to promote more of a culture of innovative entrepreneurship among aspiring entrepreneurs and to take action to improve the business climate in which SMEs operate, as such SMEs are more sensitive to environmental influences than large enterprises. In addition, evidence shows the usefulness of proposing instruments that incentivize SMEs’ participation in knowledge flows and the strengthening of human capital, which seem to make firms more receptive to innovation. Last but not least, the importance of belonging to networks for the interchange of knowledge and experience is confirmed, an aspect in which smaller units without a track record are particularly disadvantaged.