IDEAS home Printed from https://ideas.repec.org/p/zbw/tuhtim/50.html
   My bibliography  Save this paper

Barriers to innovation in SMEs: Can the internationalization of R&D mitigate their effects?

Author

Listed:
  • Tiwari, Rajnish
  • Buse, Stephan

Abstract

Technological advancements, especially in Information and Communication Technologies (ICT) have enhanced greatly the competition spurred by the globalization of the world economies. Even small and medium-sized enterprises (SMEs) are no more immune to the challenges that the globalization brings about. It is a remarkable, and in certain instances worrisome, situation since SMEs play a key-role in most economies, in that they constitute the largest business block and provide the bulk of employment. However, opportunities presented by the globalization and the entwined, simultaneous pressure to innovate opens for SMEs new arenas to engage in what we may call are global innovation activities so as to gain, retain, and further strengthen the competitive position. This pressure to go for global innovation is enhanced by given socio-demographic factors, e.g. shortage of skilled labour, in many industrialized countries. This paper presents the findings of a survey by the authors carried out in the Metropolitan Region of Hamburg in Germany to identify barriers to innovation in selected industries and to work out solutions. The project RIS-Hamburg was initiated by the State Ministry of Economic and Labour Affairs in Hamburg and co-financed by the European Union (EU). The findings of this survey are here matched against perceived opportunities and challenges presented by global innovation.

Suggested Citation

  • Tiwari, Rajnish & Buse, Stephan, 2007. "Barriers to innovation in SMEs: Can the internationalization of R&D mitigate their effects?," Working Papers 50, Hamburg University of Technology (TUHH), Institute for Technology and Innovation Management.
    • Handle: RePEc:zbw:tuhtim:50
    as

    Download full text from publisher

    File URL: https://www.econstor.eu/bitstream/10419/55499/1/546470335.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Günterberg, Brigitte & Kayser, Gunter, 2004. "SMEs in Germany: Facts and figures 2004," IfM-Materialien 161, Institut für Mittelstandsforschung (IfM) Bonn.
    2. Spielkamp, Alfred & Rammer, Christian, 2006. "Balanceakt Innovation: Erfolgsfaktoren im Innovationsmanagement kleiner und mittlerer Unternehmen," ZEW Dokumentationen 06-04, ZEW - Leibniz Centre for European Economic Research.
    3. Sofka, Wolfgang, 2006. "Innovation Activities Abroad and the Effects of Liability of Foreignness: Where it Hurts," ZEW Discussion Papers 06-029, ZEW - Leibniz Centre for European Economic Research.
    4. Tiwari, Rajnish & Buse, Stephan & Herstatt, Cornelius, 2007. "Innovation via global route: Proposing a reference model for chances and challenges of global innovation processes," Working Papers 49, Hamburg University of Technology (TUHH), Institute for Technology and Innovation Management.
    5. Verworn, Birgit & Herstatt, Cornelius & Nagahira, Akio, 2006. "The impact of the fuzzy front end on new product development success in Japanese NPD projects," Working Papers 39, Hamburg University of Technology (TUHH), Institute for Technology and Innovation Management.
    6. Zoltan Acs & David Audretsch, 1990. "Innovation and Small Firms," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262011131, December.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Ozlem CETINKAYA BOZKURT & Adnan KALKAN, 2014. "Business Strategies of SME’s, Innovation Types and Factors Influencing Their Innovation: Burdur Model," Ege Academic Review, Ege University Faculty of Economics and Administrative Sciences, vol. 14(2), pages 189-198.
    2. Vitaliy Roud & Valeriya Vlasova, 2016. "Firm-Level Evidence on the Cooperative Innovation Strategies in Russian Manufacturing," HSE Working papers WP BRP 63/STI/2016, National Research University Higher School of Economics.
    3. Jakub Tabas & Michaela Beranová & Jan Vavřina, 2011. "Barriers to development of the innovation potential in the small and medium-sized enterprises," Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis, Mendel University Press, vol. 59(7), pages 447-458.
    4. Teemu Santonen & Mikko Julin, 2019. "HOW TRANSNATIONAL LIVING LABS CAN HELP SMEs TO INTERNATIONALISE," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 23(08), pages 1-16, December.
    5. Sorin Briciu & Constantin Groza & Alina Puţan, 2012. "Small Business Development During The Crisis," Annales Universitatis Apulensis Series Oeconomica, Faculty of Sciences, "1 Decembrie 1918" University, Alba Iulia, vol. 2(14), pages 1-2.
    6. Veland Ramadani & Hyrije Abazi-Alili & Léo-Paul Dana & Gadaf Rexhepi & Sadudin Ibraimi, 2017. "The impact of knowledge spillovers and innovation on firm-performance: findings from the Balkans countries," International Entrepreneurship and Management Journal, Springer, vol. 13(1), pages 299-325, March.
    7. Herstatt, Cornelius & Tiwari, Rajnish & Buse, Stephan, 2008. "India's National Innovation System: Key elements and corporate perspectives," Working Papers 51, Hamburg University of Technology (TUHH), Institute for Technology and Innovation Management.
    8. Konstantinos Panagiotakopoulos & Jose Maria Fernandez-Crehuet & José Molero Zayas, 2018. "Public Finance of R&D and the Obstacles to Innovation: The Case of Spain," International Journal of Social Science Studies, Redfame publishing, vol. 6(12), pages 1-21, December.
    9. Ale Ebrahim, Nader & Ahmed, Shamsuddin & Taha, Zahari, 2010. "Virtual R&D teams and SMEs growth: A comparative study between Iranian and Malaysian SMEs," MPRA Paper 26983, University Library of Munich, Germany, revised 13 Jul 2010.
    10. Corchuelo Martínez-Azúa, Beatriz & Ferreiro Seoane , Francisco J., 2019. "Agri-food industry in Extremadura: obstacles to innovation, willingness to innovate, and demanded public actions," INVESTIGACIONES REGIONALES - Journal of REGIONAL RESEARCH, Asociación Española de Ciencia Regional, issue 45, pages 181-199.
    11. Daniel Kipkirong Tarus & Emmanuel Kiptanui Sitienei, 2015. "Intellectual capital and innovativeness in software development firms: the moderating role of firm size," Journal of African Business, Taylor & Francis Journals, vol. 16(1-2), pages 48-65, January.
    12. Meijer, L.L.J. & Huijben, J.C.C.M. & van Boxstael, A. & Romme, A.G.L., 2019. "Barriers and drivers for technology commercialization by SMEs in the Dutch sustainable energy sector," Renewable and Sustainable Energy Reviews, Elsevier, vol. 112(C), pages 114-126.
    13. Irene Fafaliou & Marinos Stefanitsis & Aelita Skarzauskiene, 2014. "The Propensity of SMEs to Innovate: A Cross – Country Outlook," SPOUDAI Journal of Economics and Business, SPOUDAI Journal of Economics and Business, University of Piraeus, vol. 64(3), pages 94-115, July-Sept.
    14. Ramadani, Veland & Hisrich, Robert D. & Abazi-Alili, Hyrije & Dana, Léo-Paul & Panthi, Laxman & Abazi-Bexheti, Lejla, 2019. "Product innovation and firm performance in transition economies: A multi-stage estimation approach," Technological Forecasting and Social Change, Elsevier, vol. 140(C), pages 271-280.
    15. Ale Ebrahim, Nader & Ahmed, Shamsuddin & Taha, Zahari, 2010. "Critical factors for new product developments in SMEs virtual team," MPRA Paper 26936, University Library of Munich, Germany, revised 15 Jul 2010.
    16. Jakub Tabas & Michaela Beranová & Josef Polák, 2012. "Evaluation of innovation processes," Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis, Mendel University Press, vol. 60(2), pages 523-532.
    17. Monika Walicka, 2014. "INNOVATION TYPES AT SMEs AND EXTERNAL INFLUENCING FACTORS," "e-Finanse", University of Information Technology and Management, Institute of Financial Research and Analysis, vol. 10(3), pages 73-81, December.
    18. Jorge Antonio Rangel Magdaleno & Martha Gonzalez Adame & Luis Aguilera Enriquez & Roberto Ezequiel Franco Zesati, 2015. "RELATIONSHIP BETWEEN BARRIERS TO INNOVATION AND KNOWLEDGE MANAGEMENT: EMPIRICAL ANALYSIS OF SMEs MANUFACTURING, RELACION ENTRE BARRERAS A LA INNOVACION Y GESTION DEL CONOCIMIENTO: ANALISIS EMPIRICO PY," Revista Internacional Administracion & Finanzas, The Institute for Business and Finance Research, vol. 8(7), pages 83-93.
    19. Oscar Nugroho & Roos K. Andadari, 2014. "The Innovation of Micro, Small, and Medium Enterprises: A Case Study of Laweyan Batik Village – Indonesia," Indian Journal of Commerce and Management Studies, Educational Research Multimedia & Publications,India, vol. 5(2), pages 37-46, May.
    20. Nader Ale Ebrahim & Shamsuddin Ahmed & Zahari Taha, 2010. "SMEs; Virtual Research and Development (R&D) Teams and New Product Development: A Literature Review," Post-Print hal-00593362, HAL.
    21. Nader Ale Ebrahim & Shamsuddin Ahmed & Zahari Taha, 2009. "Virtual R & D teams in small and medium enterprises: A literature review," Post-Print hal-00593358, HAL.
    22. Radostina Popova & Diana Ivanova, 2012. "Innovativeness of the Small and Medium-Sized Enterprises Manufacturing Furniture," Economic Studies journal, Bulgarian Academy of Sciences - Economic Research Institute, issue 3, pages 54-67.
    23. Pietrasieñski Pawe³ & Œlusarczyk Beata, 2015. "Internationalization Of Small And Medium Enterprises – Empirical Research Review On Barriers To Entry Into Foreign Markets," Polish Journal of Management Studies, Czestochowa Technical University, Department of Management, vol. 11(1), pages 113-123, June.
    24. Horbach, Jens, 2016. "The impact of resource efficiency measures on performance in small and medium-sized enterprises," Ruhr Economic Papers 643, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Stephan Buse & Rajnish Tiwari & Cornelius Herstatt, 2010. "Global Innovation: An Answer To Mitigate Barriers To Innovation In Small And Medium-Sized Enterprises?," International Journal of Innovation and Technology Management (IJITM), World Scientific Publishing Co. Pte. Ltd., vol. 7(03), pages 215-227.
    2. Tiwari, Rajnish & Buse, Stephan & Herstatt, Cornelius, 2007. "Innovation via global route: Proposing a reference model for chances and challenges of global innovation processes," Working Papers 49, Hamburg University of Technology (TUHH), Institute for Technology and Innovation Management.
    3. Michael Fritsch & Viktor Slavtchev, 2007. "What determines the efficiency of regional innovation systems?," Jena Economics Research Papers 2007-006, Friedrich-Schiller-University Jena.
    4. Talat Mahmood, 1997. "Survival of Newly Founded Businesses: A Log-Logistic Model Approach," CIG Working Papers FS IV 97-32, Wissenschaftszentrum Berlin (WZB), Research Unit: Competition and Innovation (CIG).
    5. Werner, Arndt, 2008. "Do Credit Constraints Matter more for College Dropout Entrepreneurs?," MPRA Paper 11867, University Library of Munich, Germany.
    6. Albert N. Link & John T. Scott, 2013. "Employment growth from public support of innovation in small firms," Chapters, in: Public Support of Innovation in Entrepreneurial Firms, chapter 3, pages 41-64, Edward Elgar Publishing.
    7. Andrea Vaona & Mario Pianta, 2008. "Firm Size and Innovation in European Manufacturing," Small Business Economics, Springer, vol. 30(3), pages 283-299, March.
    8. Andreas Koch & Harald Strotmann, 2006. "Determinants of Innovative Activity in Newly Founded Knowledge Intensive Business Service Firms," International Studies in Entrepreneurship, in: Michael Fritsch & Juergen Schmude (ed.), Entrepreneurship in the Region, chapter 10, pages 195-224, Springer.
    9. Aschhoff, Birgit & Baier, Elisabeth & Crass, Dirk & Hud, Martin & Hünermund, Paul & Köhler, Christian & Peters, Bettina & Rammer, Christian & Schricke, Esther & Schubert, Torben & Schwiebacher, Franz, 2013. "Innovation in Germany - Results of the German CIS 2006 to 2010. Background report on the Innovation Surveys 2007, 2009 and 2011 of the Mannheim Innovation Panel," ZEW Dokumentationen 13-01, ZEW - Leibniz Centre for European Economic Research.
    10. Zahra, Shaker A., 1996. "Technology strategy and new venture performance: A study of corporate-sponsored and independent biotechnology ventures," Journal of Business Venturing, Elsevier, vol. 11(4), pages 289-321, July.
    11. Tether, B. S., 1998. "Small and large firms: sources of unequal innovations?," Research Policy, Elsevier, vol. 27(7), pages 725-745, November.
    12. Enrico Guzzini & Donato Iacobucci, 2014. "Ownership as R&D incentive in business groups," Small Business Economics, Springer, vol. 43(1), pages 119-135, June.
    13. Fontana, Roberto & Nuvolari, Alessandro & Shimizu, Hiroshi & Vezzulli, Andrea, 2013. "Reassessing patent propensity: Evidence from a dataset of R&D awards, 1977–2004," Research Policy, Elsevier, vol. 42(10), pages 1780-1792.
    14. Vanhaverbeke, Wim & Li, Ying & Van de Vrande, Vareska, 2009. "The dual role of external corporate venturing in technological exploration," MPRA Paper 26488, University Library of Munich, Germany, revised 2010.
    15. Daunfeldt, Sven-Olov & Elert, Niklas & Lang, Ã…sa, 2012. "Does Gibrat's law hold for retailing? Evidence from Sweden," Journal of Retailing and Consumer Services, Elsevier, vol. 19(5), pages 464-469.
    16. Wei, Hao & Yuan, Ran & Zhao, Laixun, 2020. "International talent inflow and R&D investment: Firm-level evidence from China," Economic Modelling, Elsevier, vol. 89(C), pages 32-42.
    17. Baldwin, John R., 1997. "Importance de la recherche et du developpement sur l'aptitude a innover des petites et des grandes entreprises manufacturieres canadiennes," Direction des études analytiques : documents de recherche 1997107f, Statistics Canada, Direction des études analytiques.
    18. Francesco Quatraro & Marco Vivarelli, 2015. "Drivers of Entrepreneurship and Post-entry Performance of Newborn Firms in Developing Countries," The World Bank Research Observer, World Bank, vol. 30(2), pages 277-305.
    19. David B. Audretsch & Martin A. Carree & Adriaan J. Van Stel & A. Roy Thurik, 2002. "Impeded Industrial Restructuring: The Growth Penalty," Kyklos, Wiley Blackwell, vol. 55(1), pages 81-98.
    20. Josep-Maria Arauzo-Carod & Agustí Segarra-Blasco, 2005. "The Determinants of Entry are not Independent of Start-up Size: Some Evidence from Spanish Manufacturing," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 27(2), pages 147-165, September.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:zbw:tuhtim:50. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ZBW - Leibniz Information Centre for Economics (email available below). General contact details of provider: https://edirc.repec.org/data/ittuhde.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.