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Low-Tech, innovation and state aid: the Austrian case

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Abstract

This paper analyses innovation patterns of Austrian Low- and Medium Tech (LMT-) SMEs and how these companies are supported by public policy. It adds evidence to the claim that Low-Tech SMEs are actually more innovative than commonly thought and that supporting these industries might yield positive effects. The Austrian innovation system is diversified, yet programmes that aim at LMT innovations are scarce. LMT SMEs are surprisingly innovative, but rarely use available support measures, indicating that these measures may be too High-Tech-oriented. Relatively high additionality effects and impacts can be achieved, if innovative LMT projects are fostered.

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Notes

  1. PILOT = Policy and Innovation in LOw-Tech; see also http://www.pilot-project.org.

  2. Hirsch-Kreinsen (Hirsch-Kreinsen, 2004: 7) assumes that single Low-Tech firms and companies do not necessarily fall behind companies from High-Tech sectors in terms of innovative activities. However, Hirsch-Kreinsen does not backup this claim with numbers.

  3. Care has to be taken when interpreting the results, though. Because of requirements set by the sponsors of the study, the wording for the question is slightly different from that of the CIS 3 study. In addition, a number of activities were included on the questionnaire as “innovations” which are not innovations in the strict sense of the Oslo manual. However, where aspects would fall under the Oslo definition and where they would have counterparts to the CIS 3 questionnaire, it is nonetheless possible to compare the figures. Only such aspects are drawn upon in this paper.

  4. Again, this does not mean that the High-Tech oriented support programmes are of no use, but that the aspect of Low-Tech innovation and its support has been largely left out.

  5. HTLs are a type of high school special to the Austrian education system. Fifteen year old graduates from a middle school can enroll in such a school, which takes 5 years (1 year more than a regular high school) to complete and which has a strong focus on engineering subjects. Graduates from a HTL are entitled to hold the degree of an “engineer” (not to be confused with a chartered engineer who graduated from university) and have a basic knowledge in certain technological fields, such as mechanical engineering.

  6. The methodology applied for the evaluation consisted of a telephone survey using a standardized questionnaire for all project participants, 12 open qualitative interviews (with programme stakeholders as well as with external experts for R&D policy in Tyrol) and a document analysis. Due to the fact that some companies worked on more than one TIC-Net project, a total of 67 completed questionnaires were aimed for on a per project base. Fifty four interviews were eventually conducted, leading to a response rate of 81%. All of the 24 participants of the training schemes were interviewed.

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Correspondence to Alfred Radauer.

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Radauer, A., Streicher, J. Low-Tech, innovation and state aid: the Austrian case. Int Entrep Manag J 3, 247–261 (2007). https://doi.org/10.1007/s11365-006-0028-6

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