There are more than 13 million SMEs in France, Germany, Italy and Spain. They represent more than 98 % of all enterprises, account for more than half the workforce and generate a substantial part of value added in these countries. In a joint study with the promotional banks BPI, CDP and ICO, KfW analyses the structure and the development of SMEs in the four economies. Their investment and innovation activities are crucial for the future competitiveness of Europe but have suffered from persistent weakness since the financial and economic crisis. Also in Germany, SME investment and innovation are still well below pre-crisis levels. To address this issue and ensure long-term economic growth, we need specific measures directed at SMEs at both a European and national level.

SME Investment and Innovation – France, Germany, Italy and Spain