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Poland's SMEs Shift Innovation Focus from Industry to Services
๐Ÿ‡ต๐Ÿ‡ฑ Poland /Economy & Trade

Poland's SMEs Shift Innovation Focus from Industry to Services

From Rzeczpospolita · () Polish

Translated from Polish, summarized and contextualized by DistantNews.

At a glance

News Named sources Context piece
  • Polish industrial firms reduced innovation spending by 7% while service firms increased it by 12% between 2022 and 2024.
  • This shift reflects the growing role of the service sector, particularly knowledge-intensive areas like IT and consulting, driven by digitalization and automation.
  • The Polish Agency for Enterprise Development (PARP) offers various support instruments for SMEs, including simplified programs like ลšcieลผka SMART, to foster innovation.

Recent data reveals a dynamic shift in innovation spending within Poland's small and medium-sized enterprises (SMEs). Between 2022 and 2024, industrial firms saw a 7% decrease in their investment in innovation activities. Conversely, service sector firms experienced a significant 12% increase in such spending.

This trend aligns with broader economic changes, including the growing importance of the service sector in Poland's GDP structure and a rapid expansion of employment in knowledge-intensive services like IT, consulting, and management. These sectors are naturally driving innovation through digitalization, automation, and the adoption of new technologies. Innovation is increasingly defined not just by R&D but also by evolving business models and process optimization.

To naturalnie przekล‚ada siฤ™ na wzrost aktywnoล›ci innowacyjnej wล‚aล›nie w usล‚ugach. Widzimy teลผ pozytywny proces transformacji tego sektora dziฤ™ki cyfryzacji, automatyzacji i wdraลผaniu nowych technologii.

โ€” Unknown speakerExplaining the drivers behind increased innovation in the service sector.

While the decline in industrial innovation spending might seem concerning, experts suggest it's part of natural investment cycles. Industrial innovation, whether through R&D, green transformation, or digitalization, is often more capital-intensive and time-consuming, requiring new production lines or facilities. The implementation of large projects is also influenced by the availability of public funding, such as through EU programs, which have longer lead times from application to realization.

The Polish Agency for Enterprise Development (PARP) continues to support SME innovation through various instruments. Recognizing that innovation extends beyond traditional R&D, PARP is reorganizing to support employee competency development, digital tool implementation, and AI-based solutions. Flagship programs like ลšcieลผka SMART have been streamlined, with simplified application processes and increased flexibility to better meet market demands. These efforts aim to encourage a wider range of innovative activities across Polish businesses.

W tym kierunku reorganizujemy dziล› PARP. Oczywiล›cie nadal funkcjonujฤ… nasze flagowe programy, takie jak ลšcieลผka SMART. Uproล›ciliล›my jednak system aplikowania i oceniania projektรณw, ograniczyliล›my liczbฤ™ moduล‚รณw i zwiฤ™kszyliล›my elastycznoล›ฤ‡ dla przedsiฤ™biorcรณw.

โ€” Unknown speakerDescribing PARP's efforts to support SME innovation.
DistantNews Editorial

Originally published by Rzeczpospolita in Polish. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.