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According to a survey by BCCI 53% of companies do not invest in innovation



 
In July this year, BCCI held a survey about the innovation activity of companies and their cooperation with the scientific and research institutes. The goal was to come up with measures that would encourage companies to invest in scientific research. 


The reason to hold the survey was the remaining unfavourable position of our country in international classifications in relation to “Innovation” (93rd place in the Global Competitiveness Index 2011 – 2012 among 139 countries and 92nd place in the “Best countries for business 2012” classification held among 134 countries). 

On the other hand, export which was among the main generators of growth still comprises mainly of raw materials and products with low added value. In this sense and while having in mind the registered lower rate of exports in the first 5 months of 2012, one of the factors for achieving economic growth might be intensifying the innovation activity of companies. 

Most of the companies that took part in the survey work in industry (60 %), followed by the services sector (22 %) and trade (18 %).

A little over half of the participants in the survey (53 %) say that they do not use innovations and give various reasons for that. 

Around 18% of BCCI’s members reckon that innovations are not applicable in their business, and only 2% of companies say that they do not need to implement scientific developments while carrying out their activity. Almost 1/3 (27%) of companies use innovations and most of them have implemented their own solutions. 

Among the most often cited reasons for lack of innovations by business are: the administrative burden and the need of own finances for the bank guarantee or co-financing, etc. in relation to the projects under Operational Programme “Competitiveness”, the volatile economic environment and the lack of financial resources. The last two obstacles are also reflected in the businesses’ inclination towards providing funds for innovation:

• The largest is the share of companies (28%) which would give up to 5% of their profit for this activity;
• 21% of the surveyed companies are inclined to investing in innovations up to 10% of their profit;
• 19% of the members of BCCI would give 20% of their positive financial results;
• 18% are ready to invest up to 50% in innovations; 
• 9% are not inclined to investing a share of their profit in innovations;
• Only 5% of companies would give more than half of their profit for innovative activities.

Asked whether they are ready to cooperate with scientific institutes or universities, 60% of companies answered positively, while 40% of companies do not intend to perform joint activities with such institutions. 
The intentions of the companies for cooperation with scientific institutes or universities mainly concern hiring/offering apprenticeship to the most talented students and providing part of the necessary funds for a certain scientific product. 

According to the members of BCCI the most important measures to be taken in order to increase the innovation activity of businesses in the country are to change the conditions for financing of innovations under Operational Programme “Competitiveness” so that they become attractive to businesses (according to 67% of the surveyed companies) and to introduce tax incentives and other stimuli (according to 64%). 

Around 40% of companies say that the science circles need to promote scientific developments more actively, while 1/3 of the surveyed say that a better management of the National Innovation Fund and National Scientific Research Fund is needed as well as more public-private partnerships.

Conclusions from the survey:
• The administrative burden, the volatile economic environment and the lack of finances are the three main reasons which prevent businesses from investing in innovations. The first reason is also reflected in the small number of innovative projects implemented with the financial support of Operational Programme “Competitiveness” and the low absorption of funds under Priority axis 1 “Development of economy based on knowledge and innovation activities” (2,41% as of 1st July 2012)
• A significant part of the companies that took part in the survey reckon that scientific institutes/universities need to cooperate more actively with the business. Innovations require a sustainable environment in which the business, state bodies and educational institutions work together. 

02.08.2012

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