From Single to Multi-Project Participation: SME Absorptive Capacity in Horizon 2020

Loreta Isaraj

CNR-IRCrES, Consiglio Nazionale delle Ricerche, Istituto di Ricerca sulla Crescita Economica Sostenibile, via dei Taurini 19, 00185 Roma, Italia

Corresponding author: loretaisaraj@cnr.it

Abstract

This paper presents an analysis of SME participation in the European Framework Programme for Research and Innovation (Horizon 2020), focusing on the role of firm age in shaping funding engagement and success. Our dataset comprises a broad sample of Italian SMEs, allowing us to distinguish between firms participating in a single project and those engaging in multiple projects. We find it important to distinguish two patterns of participation: single engagement, where firms participate only once throughout the entire seven-year duration of Horizon 2020, and sustained involvement, where firms secure funding for multiple projects over time. Our econometric results indicate that older SMEs, benefiting from accumulated experience and established networks, tend to perform better in multi-project participation, achieving higher funding efficiency compared to younger SMEs. In contrast, younger SMEs, while more agile and innovative, often face challenges in sustaining long-term engagement due to resource constraints and limited administrative capacity. These findings underscore the importance of firm age as a key determinant of absorptive capacity and funding success in EU research programs, with implications for policies aimed at improving SME access to international R&D funding.

Keywords: Horizon 2020, SMEs, age, absorptive capacity, multi-project engagement.

DOI: 10.23760/2421-7158.2025.002

ISSN (online): 2499-6661

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How to Cite

Isaraj, L. (2025). From Single to Multi-Project Participation: SME Absorptive Capacity in Horizon 2020 (CNR-IRCrES Working Paper 2/2025). Istituto di Ricerca sulla Crescita Economica Sostenibile. http://dx.doi.org/10.23760/2421-7158.2025.002

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