Innovation in Small and Medium Sized Businesses

Innovation in Small and Medium Sized Businesses

2020
2020

The sector of small and medium size businesses is of great importance to the Israeli economy. Although it accounts for only 15% of businesses, this sector derives 34% of the gross national product and employs approximately 40% of the workers. However, the productivity in this sector is low compared to businesses in other size groups, and this gap is particularly large in Israel, compared to the world. Innovation has been found to contribute to the growth and productivity of businesses. This study analyzes the barriers facing small and medium size businesses in their attempt to promote innovation and growth. In addition, the IEP is conducting an overview of the assistance tools currently available in Israel, and the extent to which they satisfy the needs of businesses, as well as an overview of additional assistance tools available in the world, such as vouchers, one stop-shop and private assistance funds. Based on the above review, the objective of this project is to offer practical ways to promote innovation in small and medium size businesses in Israel.

The sector of small and medium size businesses is of great importance to the Israeli economy. Although it accounts for only 15% of businesses, this sector derives 34% of the gross national product and employs approximately 40% of the workers. However, the productivity in this sector is low compared to businesses in other size groups, and this gap is particularly large in Israel, compared to the world. Innovation has been found to contribute to the growth and productivity of businesses. This study analyzes the barriers facing small and medium size businesses in their attempt to promote innovation and growth. In addition, the IEP is conducting an overview of the assistance tools currently available in Israel, and the extent to which they satisfy the needs of businesses, as well as an overview of additional assistance tools available in the world, such as vouchers, one stop-shop and private assistance funds. Based on the above review, the objective of this project is to offer practical ways to promote innovation in small and medium size businesses in Israel.

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