Innovations are an important element of the development strategy of modern enterprises. Defined by innovative: products, services, technologies or business models, they play a key role in shaping the competitiveness of companies and are a response to changing market needs. Let's check how Poland and Polish enterprises rank in terms of innovation against the background of Europe and the world.
Innovation – creating value
By introducing innovations, entrepreneurs shape not only market trends, but also social trends. They build competitive advantages that increase business resilience to global challenges, such as climate change or geopolitical tensions. Thanks to innovative solutions, they can optimize costs, conquer new markets and create the future of their industries. The availability of various forms of financial and advisory support enables the implementation of these projects. On the other hand, understanding the process of creating innovations allows you to adapt to market requirements and use innovative potential to increase your competitiveness and efficiency.
Areas of innovation
Innovation in a company can be divided into two main types:
- Product innovations – covering new or improved products or services that are significantly different from those existing so far and have already been introduced to the market.
- Business process innovations – relating to new or improved processes in various business functions – from production, distribution and logistics, to organisation, marketing, sales, after-sales services, administration and management.
Taking into account the presented definitions, it can be stated that even the smallest organization has the potential to introduce changes in various fields of its activity. As shown by data from the Polish Agency for Enterprise Development (PARP), as many as 91.7% of companies implementing innovations see significant economic benefits* that result from them.
How does Poland compare to other countries?
By using its enormous potential and public support, Poland (as announced by the government) should join the group of the EU's ten leading innovators in the next 10 years. In the Global Innovation Ranking 2024, we rank 40th in the world (out of 133 countries) and 25th in Europe (out of 39 countries), which places us in the category of “emerging innovators”. Although our innovation rate does not exceed 70% of the EU average, growing expenditure on research and development (R&D), which in 2023 amounted to PLN 53.1 billion (1.56% of GDP) and was 18.8% higher than in 2022, prove the dynamic development of the Polish innovation ecosystem.
How are innovations created and how can they be protected?
Each organization has its own unique way of introducing innovations. Most often, it is a response to a specific market need, in other cases – searching for market niches, and in still others – implementing the results of scientific research. According to the PARP Report*, the share of research and development in the process of implementing innovations has increased to 35.6%. The innovation process does not end with the introduction of a solution to the market, but requires continuous improvement and modification.
Successful implementation of innovation requires two key elements: internal organizational resources and appropriate financing. Funds can come from both
from own resources as well as external sources such as EU funds and national support programs. One of the often overlooked, but extremely important, aspects of innovation is patent protection.
Polish innovation successes
The Polish economy is increasingly based on innovation. In 2019-2021, out of 100 medium and large companies, about 30 implemented new products or services (averaged data from the Central Statistical Office and the Polish Agency for Enterprise Development). An example are companies such as Zortrax. This company has developed a device for intelligent smoothing of 3D model surfaces, used by Bosch, NASA and H. Cegielski – Fabryka Pojazdów Szynowych with its modern, diesel-electric rail bus. These examples show that financial support is a strong incentive to search for new, innovative directions of development.
Zortrax, (Source: MFiPR)
The path to innovation
As indicated by research from 2023, the basic source of financing for innovation in Poland were own funds (in over 77% of the surveyed enterprises), but almost 60% of companies also benefited from EU and non-EU subsidies*.
Financial support available for entrepreneurs in 2025
Horizon Europe – the EU's largest research and innovation framework programme
with a budget of over EUR 93 billion.
National Recovery and Resilience Plan (KPO) – a program supporting the reconstruction of the country's economic potential after the pandemic, with a budget of approximately PLN 263 billion. The plan allocates approximately PLN 21.19 billion in subsidies for the resilience and competitiveness of the economy. These funds will support, among others, digitization, robotization and innovative environmental projects.
European Funds for the Modern Economy for 2021–2027 – the largest comprehensive programme supporting the development of innovation and competitiveness of the Polish economy. As much as PLN 10 billion has been allocated for research and development projects.
- SMART Path with an allocation of PLN 1.3 billion, which can be allocated to projects of consortia of enterprises with science, including the R&D module in various fields. The maximum amount of one-time funding is PLN 150 million. The current recruitment lasts until March 28, 2025. In the same year, there will be 4 more recruitments for this program, for a total amount of PLN 2.15 billion.
- Grants for Eurogrants – the aim of the program is to increase the innovativeness and internationalization of Polish entrepreneurs from the SME sector. The current recruitment ends on April 17, 2025. The maximum amount of funding – PLN 107,000. This year, 2 more recruitments are planned under the program.
- Promotion of the brand of innovative SMEs – promotion of product brands through the Polish Economy Brand with significant export potential on international markets, with a total budget of PLN 100 million. Details of the 2 next recruitments will be announced in April and October 2025.
- Startup Booster Poland – support for innovative enterprises at an early stage of development (startups) with a budget of PLN 10 million. Recruitment will start on July 17, 2025.
- Seal of Excellence – support for R&D projects awarded the Seal of Excellence certificate under the EIC Accelerator instrument of the Horizon Europe Programme. Details of the call will be presented in May 2025.
- Start-up Platforms from the European Funds for Eastern Poland program – an offer dedicated to startups and people with an innovative business idea who want to set it up and run it in Eastern Poland. The originators who apply to the Start-up Platforms will be covered by a comprehensive incubation program, i.e. work on an innovative idea, ending with the preparation of a business model. The best ones will receive a non-refundable grant for further development.
More information can be found at www.platformystartowe.gov.pl.
Additional information about recruitment is available on the PARP website: https://feng.parp.gov.pl/
R&D tax relief : the ability to deduct part of the costs of research and development activities from the tax base.
Details available at the link: https://www.podatki.gov.pl/pit/ulgi-odlicza-i-zwolnienia/dzialalnosc-badawczo-rozwojowa/
When applying for EU funds and other financial instruments, such as bank loans, the DNSH principle (“do no significant harm”) is becoming an increasingly common criterion for assessing applications. This criterion allows for assessing whether the implemented innovations do not lead to degradation or significant deterioration of the natural environment (in line with the 6 environmental objectives).
Photo: Nassorn, source: Adobe Stock (Partner Material)
Free support tools
Entrepreneurs who want to introduce innovations into their business can also count on free advisory tools such as:
STEP – offering initial verification of a project idea in order to obtain funding under the FENG Programme.
Innovation Coach – for those who do not yet have ideas for innovations, but want to develop them and conduct research and development activities.
I nnoPoint – the information service system for FENG 2021-2027.
Innovations as the driving force of the economy
Thanks to national and EU support, Polish companies are increasingly investing in new technologies and process improvements, which allows them not only to achieve significant economic benefits, but also contributes to building a sustainable and innovative industry.
* Report from the study: ” Monitoring the innovativeness of Polish enterprises. Innovation maturity index. 5th edition – 2023″, conducted by Bluehill Sp. z o. o. Marketing Research Center INDICATOR Sp. z o. o. in 2023 on behalf of the Polish Agency for Enterprise Development, Warsaw 2023. http://www.parp.gov.pl
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