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Large and small firms’ role in the knowledge-based industries innovation process

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  • Rodríguez, José Carlos

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    (Instituto de Investigaciones Económicas y Empresariales de la Universidad Michoacana de San Nicolás de Hidalgo)

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    Abstract

    This paper is an introduction to the discussion of the role played by knowledgebased large and small firms in the innovation process. It takes into account the theoretical background within the Schumpeterian-Penrosian tradition. The paper reviews a model where firm size has important implications for specific stages of the innovation process. An important conclusion in this work is that small firms are highly responsive when reacting to technological change. However, financial restrictions constitute an important impediment for innovation development in small firms. From this perspective, cooperation and alliances between large and small firms is an adequate response to the problems arising when knowledge-based firms innovate. The paper also presents some empirical results obtained from a survey on biotechnology-related industries conducted in Canada in 1999 as an empirical demonstration of this theoretical approach.

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    Bibliographic Info

    Article provided by Universidad Michoacana de San Nicolás de Hidalgo, Instituto de Investigaciones Económicas y Empresariales in its journal Revista Nicolaita de Estudios Económicos.

    Volume (Year): II (2007)
    Issue (Month): 1 ()
    Pages: 131-143

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    Handle: RePEc:ris:rnicee:0031

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    Related research

    Keywords: Schumpeter-Penrose; innovation; technological change; firm size; biotechnology.;

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