Importance of Technological Innovation for SME Growth - Evidence from India
AbstractThis paper probes the drivers, dimensions, achievements, and outcomes of technological innovations carried out by SMEs in the auto components, electronics, and machine tool sectors of Bangalore in India. Further, it ascertains the growth rates of innovative SMEs vis-a-vis noninnovative SMEs in terms of sales turnover, employment, and investment. Thereafter, it probes the relationship between innovation and growth of SMEs by (i) estimating a correlation between innovation sales and sales growth, (ii) calculating innovation sales for high, medium, and low growth innovative SMEs and doing a one-way ANOVA, and (iii) ascertaining the influence of innovation sales, along with investment growth and employment growth on gross value-added growth by means of multiple regression analysis. The paper brings out substantial evidence to argue that innovations of SMEs contributed to their growth.
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Bibliographic InfoPaper provided by United Nations University, Maastricht Economic and social Research and training centre on Innovation and Technology in its series UNU-MERIT Working Paper Series with number 007.
Date of creation: 2010
Date of revision:
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Web page: http://www.merit.unu.edu
technological innovations; sales growth; auto components; electronics; machine tools; Bangalore;
Find related papers by JEL classification:
- L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
- L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
This paper has been announced in the following NEP Reports:
- NEP-ALL-2010-04-17 (All new papers)
- NEP-CWA-2010-04-17 (Central & Western Asia)
- NEP-ENT-2010-04-17 (Entrepreneurship)
- NEP-INO-2010-04-17 (Innovation)
- NEP-KNM-2010-04-17 (Knowledge Management & Knowledge Economy)
- NEP-SBM-2010-04-17 (Small Business Management)
- NEP-TID-2010-04-17 (Technology & Industrial Dynamics)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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Open Access publications from Universidad Carlos III de Madrid
info:hdl:10016/7815, Universidad Carlos III de Madrid.
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