Innovative SMEs are small and medium-sized enterprises that invest continuously in research, technology, and highly qualified human capital.
The status of Innovative SME, introduced by Article 4 of Decree-Law 3/2015, is based on the European definition of micro, small, and medium-sized enterprises (Recommendation 2003/361/EC). It applies to limited companies operating in Italy—or in another EU/EEA country with a production site in Italy—that are not listed on regulated markets and possess certified financial statements. A company cannot be simultaneously registered as an innovative startup, though a seamless transition between the two statuses is permitted.
To qualify as an Innovative SME, companies must satisfy at least two of the following three requirements:
- R&D and Innovation Investment: spending on research, development, and innovation equal to at least 3% of the greater of the cost or value of production.
- Highly Qualified Personnel: at least one-fifth of the workforce must hold a PhD (or have three years of certified research experience), or one-third must hold a specialized Master’s degree.
- Intellectual Property: ownership of a patent or registered software directly linked to the company’s business activities.
The status must be confirmed annually with the Chamber of Commerce by updating the company’s public profile on the dedicated portal. This is an essential requirement to maintain the benefits and incentives provided by law.