Innovation Strategy and Access to Capital in SME and Large Companies – Evidence from Survey

The aim of the papers is to check whether there is a relation between company’s declared attitude towards innovation (innovation strategy) and declared problems with access to capital. The analysis takes into account the size of companies. The author intent also to compare the results with parallel conducted studies, when other (more objective) proxy for innovation was employed. Design/methodology/approach: The research is based on a survey that covers more than 400 companies operating in Poland in 5 industries. The survey is based on self-assessment approach. The companies in the survey had to indicate their attitude towards innovation (neutral, occasional, pro-innovative) and answer to a question whether a lack of capital was a serious problem hampering the company development indicating on the Lickert-scale from 1 to 5. Chi-squared test, Welch’s t-test and ordered logit model were employed to test hypotheses. Findings: Generally, SME reported higher difficulties with access to capital than large firms. There is also a difference in innovation strategy – SME indicated mainly "occasional strategy", whereas large companies "pro-innovative". It was proved that there is relation between innovation strategy and financial constraints. The firms that are moderate innovators are financially constrained, however for strong innovators with pro-innovative strategy it was not confirmed. Research/practical implications: Research have practical implication. Firstly, SME are still in worse position compared to large enterprises in area of access to different source of capital, however this "funding gap" is not so severe, as could be expected. It means that tools which may help improve access to capital for smaller companies as preferential loans, special grants are still justified. Secondly, moderate innovators are exposed to additional difficulties in raising funds successfully, what also confirms the validity of use dedicated tools as subsidy by authorities, regardless the company size. Originality/value: The studies are based on own survey, interviews with owners, managers, financial managers or R&D managers. Examined companies are in their later stage of development (growth, stability) whereas most of the research focus on access to capital for very young, innovative start-ups companies. The finding shows that also older companies suffer from asymmetry of information, especially the innovative ones.