Cooperation Networks and Innovation Performance of Small and Medium-Sized Enterprises (SMEs)

In recent years, the globalization drive has removed the barriers traditionally created by dividing competitive environments of micro and macro companies. Companies of any size initiated competitive sharing. Coexistence of micro and macro companies is increasingly prospering through entering micro companies into macro companies’ value chain. Since over 95% of production units in Iran classified as small and medium industries, such enterprises achieve significant portions in gross domestic production and value added. Therefore, this library study describes that how coexistence of smaller firms with larger companies, in recent years, was useful on innovation and technology of removing size inherent limitations and achieving required performance in global competition. Moreover, vertical and horizontal cooperation with customers, providers, and other participators play a significant and distinctive role in innovation process of small and medium organizations.