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Small business innovation: firm level evidence from Sweden

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Listed author(s):
  • Martin Andersson

    ()

  • Hans Lööf

Abstract

This paper examines innovation among very small firms and provides new insights into both internal and external determinants of patenting. Applying a non-linear panel data approach to about 160,000 observations on manufacturing firms in Sweden for the period 2000–2006, the following facts emerge: (i) in contrast to larger firms, innovation in micro firms with 1–10 employees is not sensitive to variation in internal financial resources, (ii) skilled labour is even more important for innovation among micro firms compared to other firms, (iii) affiliation to a domestically owned multinational enterprise group increases the innovation capacity of small businesses, (iv) small firms’ innovation is closely linked to participation in international trade and exports to the G7-countries, and (v) there is no statistically significant evidence that proximity to metropolitan areas, or presence in a specialized cluster, increases the innovativeness of the smallest firm. Copyright Springer Science+Business Media, LLC 2012

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File URL: http://hdl.handle.net/10.1007/s10961-011-9216-9
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Article provided by Springer in its journal The Journal of Technology Transfer.

Volume (Year): 37 (2012)
Issue (Month): 5 (October)
Pages: 732-754

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Handle: RePEc:kap:jtecht:v:37:y:2012:i:5:p:732-754
DOI: 10.1007/s10961-011-9216-9
Contact details of provider: Web page: http://www.springer.com

Order Information: Web: http://www.springer.com/business+%26+management/journal/10961/PS2

Keywords: Innovation; Innovative firms; Entrepreneurship; Small firms; Intellectual property rights; Technology transfer; Location; F43; L26; M13; O31; O34;

Find related papers by JEL classification:

  • F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies
  • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
  • M13 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - New Firms; Startups
  • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
  • O34 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Intellectual Property and Intellectual Capital

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Cited by:

  1. Xiao , Jing, 2014. "Ownership Change, Multinationals, and Growth of New Technology-Based Firms," Papers in Innovation Studies 2014/24, Lund University, CIRCLE - Center for Innovation, Research and Competences in the Learning Economy.
  2. Baumann, Julian & Kritikos, Alexander S., 2016. "The link between R&D, innovation and productivity: Are micro firms different?," Research Policy, Elsevier, vol. 45(6), pages 1263-1274.
  3. Jing Xiao, 2015. "The effects of acquisition on the growth of new technology-based firms: Do different types of acquirers matter?," Small Business Economics, Springer, vol. 45(3), pages 487-504, October.
  4. Andersson, Martin & Xiao, Jing, 2014. "Acquisitions of Start-ups by Incumbent Businesses A market selection process of “high-quality” entrants?," Papers in Innovation Studies 2014/19, Lund University, CIRCLE - Center for Innovation, Research and Competences in the Learning Economy.

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