Barriers to innovation for SMEs in Republic of Moldova

Abstract

SMEs play an important role in any country’s economy by contributing to job creation, innovation and value-added generation. However, despite the recognition of the important contribution of SMEs to the economy, there are a number of major barriers to innovation that prevent SMEs from developing. This paper aims to identify some important innovation barriers perceived by domestic SME entrepreneurs, as well as their perception of the changing trends in this field in recent years. The research is based on a mixed approach, using both primary and secondary data: statistical analysis and international rankings; the results of surveys and interviews with entrepreneurs from the small and medium-sized business sector, carried out and implemented over the last 8 years, with the participation of the authors; critical analysis and generalization of specialty literature, analytical materials; comparison; synthesis. The research results reveal that the innovation activity of SMEs remains rather modest, entrepreneurs facing a mix of internal and external problems. At the same time, entrepreneurs have not noticed essential changes in the last decade in terms of innovation development and implementation.