The importance of small knowledge intensive firms in European countries

Abstract

Smart, sustainable and inclusive growth is the basis for European 2020 strategy, in which small and medium-sized enterprises (SMEs) are considered the backbone of European countries economies. The present study aims to investigate the relationship between the main variables that characterises small knowledge intensive firms (SKIFs) and the importance of their business expenditure on re- search and development (BERD). To achieve this, European member states were analysed during the period between 2008 and 2012 using a clusters analysis. Through this study it is possible to conclude that countries that have high growth values on SKIFs also achieve growth in GDP and BERD.