In the European Union, slightly more than half (51%) of the enterprises with ten or more employees reported about innovation activities during the period 2014-2016, just a bit more than in the preceding period of 2012-2014 (49%), the press statement by the Eurostat says.

During the period of 2014-2016, the highest proportion of enterprises with innovation activity were recorded in Belgium (68%), Portugal (67%), Finland (65%), Luxembourg (64%) and Germany (64%). The low-performers included Hungary (29%), Bulgaria (27%), Poland (22%) and Romania (10%).

The Community Innovation Survey 2016, published by the Eurostat in March 2018, contains a broad set of indicators on innovation activities of enterprises.

Businesses spend €192.8m on innovation in 2016

In 2016, technological innovation expenditure reached an estimated €192.8m, according to data published by the Maltese National Statistics Office (NSO) at the end of September 2018.

Some 66.6% (€128.4m) of this was spent on acquiring machinery and equipment, which was followed by 16.8% (€32.4m) being spent on intramural research and development.

Between 2014 and 2016, some 27.1% (511) of the total enterprises employing a staff of at least ten engaged in innovation activities, NSO figures reveal.

“Results show that 85 enterprises were engaged solely in technological innovation, 148 enterprises were engaged in non-technological innovation and the remaining 278 were involved in both technological and non-technological innovation,” the NSO says in its release published in September.

NSO also found that 9% of all technologically innovative enterprises believe that cooperation agreements with suppliers of equipment, materials, components or software are highly crucial in boosting innovation.

“Low demand for innovations in the market and no need to innovate due to previous innovations were the two main obstacles which hindered non-innovative enterprises from engaging in innovative activities,” the NSO says in its earlier report.

The post Maltese businesses underperform EU average in innovation in 2016 first appeared on The Malta Business Weekly.

While the year 2016 saw the average number of new firms registered standing at 22.2 per day, slightly rising to 22.7 per day in 2017, last year saw a hike to 25.3 on average a day, according to a report by the Malta Chamber. Some 99% of these registrations in 2018 were private limited liability companies, the Malta Chamber says in a post that originally appeared in the Malta Business Observer.

A dropping number of dissolutions also supported the rising figure. In 2018, the number of dissolved firms was 1,232, down from 1,603 in 2016.

Figures by the registrar show that 23,405 foreign or partly-foreign owned firms — with at least one non-Maltese shareholder — are quickly closing the gap, nearing 26,762 Maltese-owned enterprises.

“Maltese business legislation and the regulatory environment are among the most proactive and business-friendly ones in Europe,” says David Xuereb, Deputy President of Malta Chamber of Commerce, Enterprise and Industry Deputy President. Mr Xuereb says he believes the local legislative framework provides a “safe and competitive” corporate environment, which is vital for boosting the number of successful applications.

Provided that all the requirements set by the Company Act are satisfied, a company can be established in the archipelago within two or three days by applying to the Malta Financial Services Authority (MFSA) and RoC Malta, the Malta Chamber explains.

“The process is also inexpensive; a minimum share capital for private limited liability companies of €1,165 is decreed, of which only 20% has to be paid up front. This can be denominated in any currency, and there are no exchange control restrictions, thus encouraging the use of Maltese corporate vehicles for businesses trading internationally,” the press statement issued by the Malta Chamber says.

Mr Xuereb notes that the corporate environment in Malta is highly similar to Europe in general, which makes the island an attractive spot for companies planning to set up operations in here. He believes this also encourages the international corporate sector.

“We might see emerging segments in the economy attracting new investments and companies to Malta, especially in the fields of fintech, blockchain and distributed ledger technologies (DLTs) and, eventually, artificial intelligence,” Mr Xuereb says. “The motivation and energy seem to be coming from the services industry at this moment,” he adds.

Mr Xuereb notes that the regulatory framework, as well as institutions, should further be strengthened for ensuring sustainable growth in here, adding that the Malta Chamber has a vital role in such progress.

The post Maltese-registered company numbers grow by the day first appeared on The Malta Business Weekly.