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Who benefits from radical innovations of SMEs? - Empirical evidence from the German Biotechnology

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  • Mariia Shkolnykova
  • Muhamed Kudic

Abstract

Radical innovations are of key importance from an economic point of view since they bear the potential to trigger the emergence of new technological trends and fuel economic prosperity while simultaneously causing far-reaching structural change processes. In this paper we focus on the transfer channels of radical innovations launched by small and medium-sized firms (SMEs). Based on a unique longitudinal dataset covering the observation period 1996 - 2016, we identify and trace back radical innovations of SMEs in the German Biotech in order to analyze the extent to which SMEs themselves or eventually also other organizations in their direct cooperation surrounding benefit from radical innovations in terms of subsequent innovation performance. Results from panel data count models indicate that direct cooperation partners of radical innovators generally seem to show higher innovative performance than partners of the control group, i.e. not radical innovating statistical twin firms. A more differentiated picture emerges if one considers the geographical and technological proximity of the cooperation partners.

Suggested Citation

  • Mariia Shkolnykova & Muhamed Kudic, 2020. "Who benefits from radical innovations of SMEs? - Empirical evidence from the German Biotechnology," Bremen Papers on Economics & Innovation 2003, University of Bremen, Faculty of Business Studies and Economics.
    • Handle: RePEc:atv:wpaper:2003
    DOI: https://doi.org/10.26092/elib/199
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    More about this item

    Keywords

    Radical innovation; biotech; ego-networks; SME; patent applications; innovative performance;
    All these keywords.

    JEL classification:

    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • O38 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Government Policy
    • D85 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Network Formation

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