Many SMEs in the manufacturing industry have ambitious innovation plans. They invest in new technology, have ideas for scalable products, and often want to grow internationally—or at least within Europe. On paper, it all makes sense. In practice, however, implementation proves difficult.
Innovation projects compete with day-to-day operations, and decisions are made under high (time) pressure. Teams are technically strong but small, and often rely on the same people and perspectives. This works as long as everything is predictable. But innovation is, by definition, uncertain: sometimes assumptions turn out to be wrong, choices have to be reconsidered and priorities shifted.
As a result, many innovation projects do not get stuck on technology, but on organization and decision-making. Not because of a lack of ambition, but because the way entrepreneurs organize innovation often does not sufficiently align with that ambition. And that is precisely where an underexposed but essential issue lies.
In innovation projects, the biggest delays are rarely in technology. They arise when choices have to be made. It is precisely then that teams often fall back on familiar assumptions and known working methods.
Many SMEs, for example, work with small, technically strong teams. This makes it possible to switch gears quickly, but it also means that the same perspectives are always leading. Alternatives remain undiscussed and critical questions are raised too late. As long as a project proceeds as expected, this causes few problems. However, an increase in uncertainty (e.g., technical setbacks, upscaling, or market introduction) exposes this vulnerability. Decision-making slows down and innovation loses momentum. Not because of a lack of knowledge or ambition, but because of a lack of variety in perspective. And there is a solution that can remedy this very shortcoming: diversity.
Many organizations approach diversity primarily as an HR issue. This concerns recruitment, policy, or culture, separate from the content of innovation projects. As a result, diversity quickly becomes something that is “added on,” rather than something that directly contributes to better decision-making.
In the context of innovation, however, diversity is not about representation per se, but about variation in perspective. Teams in which people differ in background, education, experience, or way of thinking look at problems differently and ask different questions. It is precisely these differences that help to test assumptions earlier and make choices more consciously.
In practice, the positive effect of diversity is therefore particularly visible when a project comes under pressure. Research shows that a diverse team brings a broader range of perspectives. This promotes creativity and problem solving, which strengthens innovation. Statistics also show that diverse teams achieve better decision-making and innovation because they generate more ideas and reconsider decisions more critically.
At PNO Innovation, we see this every day in the collaboration within and between teams. Our teams consist of people with diverse backgrounds, ages, and experiences. It is precisely these differences that enable us to view issues from multiple angles and identify assumptions more quickly. While this sometimes leads to more discussion, it also results in sharper choices and a more efficient way of working.
We see the same logic reflected in European innovation programs such as the EIC program or Horizon Europe. Diversity is not a non-binding side issue in these programs, but an explicit assessment criterion. Applicants must demonstrate how their management and decision-making are structured and that different perspectives are ensured. Within Horizon Europe, having a Gender Equality Plan (GEP) is even a mandatory requirement for organizations such as public research institutions, universities, and government agencies when participating in calls from 2022 onwards. Without such a plan structure, an organization cannot receive a Horizon Europe grant. Diversity is also part of the broader EU policy on equal opportunities and inclusion, which is reflected in various innovation programs and provides a context in which team composition and inclusive decision-making count towards grant allocation.
Ensuring diversity is therefore not an ideological choice, but a practical one. European grant providers invest in innovations that need to be scaled up under high uncertainty. This includes the question of whether a team is able to test and adjust assumptions in a timely manner. In this light, diversity in teams and management acts as risk management.
In summary, innovative strength depends not only on technological expertise, but also on the way teams are composed and decision-making is structured. When innovation comes under pressure, variation in perspective is not a luxury, but a prerequisite for agility and quality. European subsidy programs make this visible by explicitly taking team structure and inclusive decision-making into account in their assessment. In short, anyone who takes innovation seriously as a strategic process cannot separate the structure of their team from the success of the project.
Do you recognize this dynamic in your own innovation projects? Then we invite you to discuss this with us, starting with the question of how your organization organizes innovation and which preconditions are helpful in this regard. At PNO Innovation, we are happy to contribute our ideas. Please contact us at +31(0)88 838 13 81 or send us a message.
Karlijn Prince-Verdam is a Consultant Subsidies & Innovation at PNO Innovation Netherlands.
03/03/2026
23/02/2026
09/02/2026
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