An innovative SME, in Italian law, is a small or medium-sized company incorporated as a limited company and listed in a special section of the Companies Register because it meets statutory requirements of technological innovation: research and development spending, highly qualified staff, or ownership of a patent or registered software. The status, introduced by Decree-Law 3/2015, gives access to tax incentives for investors, financing tools and more flexible rules. This article, written in 2021 to announce WWG's registration and updated in 2026, explains what the status means, which requirements stand behind it and why it matters when you choose a software partner.
TL;DR
- Italy's innovative SME status is defined by article 4 of Decree-Law 3/2015: a limited company, not listed on a regulated market, with certified accounts, within the EU size limits for SMEs and meeting at least two of three innovation requirements.
- The three requirements are: R&D spending of at least 3% of the greater of production cost and value; a share of staff with a PhD, research experience or a master's degree; ownership or licence of a patent or registered software.
- The status brings tax incentives for investors, equity crowdfunding, easier access to the SME Guarantee Fund and flexible rules on governance and remuneration, and must be confirmed every year.
- WWG has been registered since 2021: for a client it means a partner whose innovation activity is verified by a public register, not just claimed.
- For WWG the status formalises a way of working: being "perpetually in beta".
What are the requirements for an innovative SME?
The requirements are set by article 4 of Decree-Law 3/2015: the company must be a limited company, including cooperatives, not listed on a regulated market, with its latest accounts certified by an auditor, within the EU size limits for small and medium-sized enterprises, and meet at least two of three innovation requirements. The current text should be checked at the official source. (normattiva.it)
| Innovation requirement | Threshold set by law |
|---|---|
| Research and development | R&D and innovation spending of at least 3% of the greater of production cost and production value |
| Qualified staff | At least one fifth of the workforce with a PhD or certified research experience, or at least one third with a master's degree |
| Intellectual property | Ownership, including as licensee, of at least one industrial property right or an original registered software |
The company must also be based in Italy, or in another EU member state with a production site or branch in Italy, and must not be registered as an innovative startup: the two statuses are alternatives, and the innovative SME is often the next step for a startup that has outgrown the age or turnover limits.
What does the status bring to the company and its investors?
It brings tax incentives for individuals and companies that subscribe capital, the possibility to raise funds through authorised equity crowdfunding portals, simplified and free access to the SME Guarantee Fund, exemption from stamp duty on Companies Register filings, and more flexibility in governance and in remunerating people with equity instruments.
| Area | Benefit |
|---|---|
| Investors | Personal income tax deduction for individuals and corporate tax deduction for companies investing in the capital, at the rates and within the limits set by current legislation |
| Capital raising | Offering of shares through authorised equity crowdfunding portals |
| Credit | Simplified access to the SME Guarantee Fund |
| Administrative costs | Exemption from stamp duty and secretarial fees for Companies Register filings |
| Governance and people | Derogations from ordinary company law, incentive plans with shares and stock options, flexible remuneration |
The rates and ceilings of the incentives have changed several times since 2015 and depend on the budget law in force, so they should be checked with an adviser before any investment decision. The institutional source for the list of registered companies and the statistics is the Chambers of Commerce portal. (startup.registroimprese.it)
Why does WWG's innovative SME status matter to clients?
It matters because the status is verified by a public register and confirmed every year, so a client choosing a software partner can check it rather than take it on trust: it certifies that WWG invests in research and development or holds registered intellectual property, and that its accounts are audited. In a market where every vendor describes itself as innovative, a statutory status is one of the few claims that can be looked up.
For WWG the status, obtained in 2021, formalised a way of working that already existed. In 2021 we wrote that many IT entrepreneurs had gone back to talking about "being perpetually in beta": like software still being tested, renewing continuously and keeping the search for user value at the centre. Our founder and CEO Mohamed Deramchi called it an existential condition: beta serves after great joys, to avoid resting on laurels, and after great pain, to get up again. Becoming an innovative SME means starting over at the end of each project, measuring what was done and progressing.
Unlike many SMEs where strategy is handed down from the top, at WWG company goals are defined through a process of OKRs that starts from the teams and ends in a list of concrete actions. Being innovative points to three objectives: producing an advantage on which profit depends, improving the people who work with WWG, and creating an advantage for the community, which since 2023 is also written into our statute as a benefit corporation. Our story is on the about page, and our verified credentials on the partners and certifications page.
Would you like to discuss a project with WWG? Write to a WWG engineer at business@wwg.it.
Sources
FAQ
Frequently Asked Questions
It is a small or medium-sized company incorporated as a limited company, not listed on a regulated market, with certified accounts, listed in the special section of the Companies Register because it meets at least two of three innovation requirements: R&D spending, highly qualified staff, or ownership of a patent or registered software. It is defined by article 4 of Decree-Law 3/2015.
An innovative startup is a company less than five years old, with turnover under five million euros, that does not distribute profits; an innovative SME has no age limit, must have certified accounts and must stay within the EU SME size limits. The two statuses are alternatives, and many startups move to the SME section when they outgrow the limits.
By confirming every year to the Chamber of Commerce, within the set deadlines, that the requirements are still met, through a self-declaration by the legal representative, and by updating the information published in the special section. If the requirements lapse or the confirmation is not filed, the company is removed from the special section and loses the related benefits.
Because the status is one of the few vendor claims that can be verified in a public register: it certifies audited accounts and either documented R&D spending, a highly qualified workforce or registered intellectual property. It does not replace references and a written scope, but it is evidence of how the company invests, confirmed every year.
