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Innovation capacity and innovation development in small enterprises. A comparison between the manufacturing and service sectors

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  • Forsman, Helena

Abstract

This paper explores what kinds of innovations have been developed in small manufacturing and service enterprises and what has been the degree of innovation capacity that small enterprises possess. In addition, it compares what differences there are across the manufacturing and service sectors. The empirical evidence is based on quantitative data gathered through an email questionnaire which yielded 708 qualified responses from the representatives of Finnish small enterprises with fewer than 50 employees. The analysis is based on descriptive statistics and non-parametric tests. The evidence displays a rich diversity of innovation patterns in small enterprises. The empirical evidence demonstrates only slight differences between the manufacturing and service industries while it indicates significant differences across the sectors within these industries. The value of the present study lies in the better understanding of innovation development in small enterprises. The rich diversity of innovation patterns in small enterprises suggests that diversity should also direct the policies aiming at supporting innovation development in the context of small business. Finally, applying these results will provide more specific questions for studying the nature of innovation development in small enterprises.

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Bibliographic Info

Article provided by Elsevier in its journal Research Policy.

Volume (Year): 40 (2011)
Issue (Month): 5 (June)
Pages: 739-750

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Handle: RePEc:eee:respol:v:40:y:2011:i:5:p:739-750

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Web page: http://www.elsevier.com/locate/respol

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Keywords: Capacity Innovation Manufacturing Services Small enterprises;

References

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  1. Heidenreich, Martin, 2009. "Innovation patterns and location of European low- and medium-technology industries," Research Policy, Elsevier, vol. 38(3), pages 483-494, April.
  2. Daniele Archibugi, 2001. "Pavitt'S Taxonomy Sixteen Years On: A Review Article," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 10(5), pages 415-425.
  3. Fariborz Damanpour & Richard M. Walker & Claudia N. Avellaneda, 2009. "Combinative Effects of Innovation Types and Organizational Performance: A Longitudinal Study of Service Organizations," Journal of Management Studies, Wiley Blackwell, vol. 46(4), pages 650-675, 06.
  4. Fariborz Damanpour, 2001. "The Dynamics of the Adoption of Product and Process Innovations in Organizations," Journal of Management Studies, Wiley Blackwell, vol. 38(1), pages 45-65, 01.
  5. Branzei, Oana & Vertinsky, Ilan, 2006. "Strategic pathways to product innovation capabilities in SMEs," Journal of Business Venturing, Elsevier, vol. 21(1), pages 75-105, January.
  6. Robert D. Dewar & Jane E. Dutton, 1986. "The Adoption of Radical and Incremental Innovations: An Empirical Analysis," Management Science, INFORMS, vol. 32(11), pages 1422-1433, November.
  7. Aija Leiponen, 2005. "Organization of Knowledge and Innovation: The Case of Finnish Business Services," Industry and Innovation, Taylor & Francis Journals, vol. 12(2), pages 185-203.
  8. Marjolein Caniëls & Henny Romijn, 2003. "SME Clusters, Acquisition of Technological Capabilities and Development: Concepts, Practice and Policy Lessons," Journal of Industry, Competition and Trade, Springer, vol. 3(3), pages 187-210, September.
  9. Keith W. Glaister, 1996. "Strategic Motives For International Alliance Formation," Journal of Management Studies, Wiley Blackwell, vol. 33(3), pages 301-332, 05.
  10. Rinaldo Evangelista, 2000. "Sectoral Patterns Of Technological Change In Services," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 9(3), pages 183-222.
  11. Pavitt, Keith, 1984. "Sectoral patterns of technical change: Towards a taxonomy and a theory," Research Policy, Elsevier, vol. 13(6), pages 343-373, December.
  12. Helena Forsman, 2009. "Improving Innovation Capabilities Of Small Enterprises: Cluster Strategy As A Tool," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 13(02), pages 221-243.
  13. de Jong, Jeroen P.J. & Marsili, Orietta, 2006. "The fruit flies of innovations: A taxonomy of innovative small firms," Research Policy, Elsevier, vol. 35(2), pages 213-229, March.
  14. Hartmut Hirsch-Kreinsen, 2008. "“Low-Tech” Innovations," Industry and Innovation, Taylor & Francis Journals, vol. 15(1), pages 19-43.
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Cited by:
  1. Mohammad Movahedi & Olivier Gaussens, 2013. "Les effets de l’exportation sur l’innovation et la productivité : Analyse empirique sur un échantillon de PMI," Economics Working Paper Archive (University of Rennes 1 & University of Caen) 201307, Center for Research in Economics and Management (CREM), University of Rennes 1, University of Caen and CNRS.
  2. Matthijs Janssen & Carolina Castaldi & Alexander Alexiev, 2014. "Dynamic capabilities for service innovation: conceptualization and measurement," Working Papers 14-07, Eindhoven Center for Innovation Studies, revised Mar 2014.
  3. Herimalala, Rahobisoa & Gaussens, Olivier, 2012. "X-Efficiency of Innovation Processes: Concept and Evaluation based on Data Envelopment Analysis," MPRA Paper 41887, University Library of Munich, Germany.
  4. Shahid Yusuf, 2012. "From Technological Catch-up to Innovation : The Future of China’s GDP Growth," World Bank Other Operational Studies 12781, The World Bank.
  5. Natália Barbosa & Ana Paula Faria & Vasco Eiriz, 2013. "Industry - and firm-specific factors of innovation novelty," NIPE Working Papers 10/2013, NIPE - Universidade do Minho.
  6. Andrea Bonaccorsi & Massimo Colombo & Massimiliano Guerini & Cristina Rossi-Lamastra, 2013. "University specialization and new firm creation across industries," Small Business Economics, Springer, vol. 41(4), pages 837-863, December.
  7. Fernandes, Cristina & Ferreira, João & Raposo, Mario, 2013. "Drivers to firm innovation and their effects on performance: An international comparison," MPRA Paper 46776, University Library of Munich, Germany.

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