AI, robots and innovation in European SMEs

Article  -  Monday, 24 March 2025

Segarra-Blasco, A., Tomàs-Porres, J. and Teruel, M. (2024): "AI, robots and innovation in European SMEs", Small Business Economics

This study explores how artificial intelligence (AI) and robotics drive innovation in European SMEs, analyzing key factors influencing their adoption and their impact on product, process, organizational, and marketing innovation. he study uses data from Flash Eurobarometer 486 and employs a two-stage residual inclusion strategy to analyze the relationship between the adoption of new digital technologies and the innovative potential of European SMEs, controlling for endogeneity and multicollinearity.

The main findings are as follows. First, start-ups and scale-ups lead in the adoption of AI and robotics. Both types of companies stand out as the most innovative SMEs. Second, internationalization, company size, and access to digital talent significantly influence digitalization. Third, digital skills and infrastructure at the national level are key factors that incentivize digitalization. Fourth, the simultaneous adoption of both technologies is confirmed. Finally, in manufacturing, AI and robots have more specialized applications in the development of innovations, while in services, their use is broader.

At the academic level, the importance of AI and robotics as pillars of the digital transformation of European SMEs is confirmed. Additionally, it highlights the role of start-ups and scale-ups as leaders in digitalization. Furthermore, the work reveals an evolutionary process of variety generation (innovation) and market selection among SMEs.

To sum up, the study highlights the crucial role of digital transformation in SMEs. AI and robotics not only enhance efficiency but also boost innovation. Finally, a supportive environment and government policies are key to maximizing their impact.

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