Enhancing SME innovation across European regions: Success factors in EU-funded open innovation networks

This study examines the funding allocations to Open Innovation (OI) networks involving small and mid-size enterprises (SMEs) and other organizational actors by the European Union's Horizon 2020 Fast Track to Innovation program (2018–2021). Using a unique dataset of program application information at the participant level, the technological, organizational and locational characteristics of SMEs' OI innovation networks are analyzed. Success in securing funding is found to be linked to host regional innovation performance and to technological distance among SMEs and their partners, while organizational distance has a curvilinear effect. Counter to program objectives, partner heterogeneity has some mixed effects. Insights are offered for SMEs on strategic positioning and to policymakers on the design of future innovation policy initiatives.