Statistical analysis and open innovation in economic growth of scottish business SMEs for sustainable development

Abstract

The propulsion of economic growth is a multifaceted construct, influenced by technology, capital, and resource management, with Small and Medium-sized Enterprises (SMEs) being a significant contributors to innovation and employment. This study examines the growth of Scottish SMEs across four sectors over a 14-year period (2008–2021) by employing a novel statistical approach to understand their development trajectories within the framework of open innovation. The paper engaged in a longitudinal analysis to assess trends and inform policy for sustainable growth by the utilization of open-access data. Theoretical metrics such as the Average Growth Rate, Compound Average Growth Rate (CAGR), and Year-Over-Year (YoY) Growth were applied to evaluate sectoral performance. The findings revealed varied growth patterns; the information technology sector exhibited a robust increase, while the telecommunications sector showed significant percentage growth. Conversely, the Information and Communication Technologies (ICT) sector experienced a decline that suggests a potential market gap. An affirmative trajectory in CAGR was observed in most sectors except ICT, which corroborates a shift in technological evolution and market needs. The study illuminates the dynamic economic landscape of Scottish SMEs, with telecoms emerging as the most prosperous sector in terms of growth rates, thus indicates a shifting economic focus. The study’s limitations are briefly discussed, in addition to the need for updated databases and further research employing predictive modeling with machine learning to enhance forecasting capabilities and foster open innovation for sustainable economic development.