A new report from the EU project “Improve Innovation” shows that the development of low tech products creates higher growth than high tech innovation.
 

Today, innovation has become almost synonymous to the development of high tech products, but innovation does not often come to mind in connection with low tech solutions and products. But a new European analysis shows that the development of low tech products in the companies actually creates higher growth than the high tech product development, which entails more jobs and a more wholesome bottom line.

The EU project ”Improve Innovation (IMP³rove)” made the analysis in which approximately 1000 European companies participated. The purpose of the project, which is initiated by the EU Commission, is to promote innovation in Europe, and the analysis is now available in the report ”Gaining competitiveness with innovations beyond technology and products”.

The report concludes that companies with a sole focus on the development of high tech products, e.g. through various subsidy schemes and framework conditions for high tech entrepreneurs and companies, actually miss out on a money-spinner because low tech has higher growth potential and a larger number of jobs. Furthermore, there are far more companies working with low tech than with high tech within e.g. trade, production, counselling, construction and teaching.

If growth is to be created in Europe, it is necessary to focus on the low tech companies, the report states. However, low tech companies only create growth if they prioritise innovation investments, rendering forgetting to support low tech innovation unfortunate.

As the chart from the IMP³rove report shows, the revenue, the growth rate and the need for more employees is higher with the low tech companies that are investing in the further development of their products and services.

To read the full report, which also contains a description of high tech and low tech in the various sectors click HERE