IDEAS home Printed from
MyIDEAS: Login to save this article or follow this journal

Innovation success of non-R&D-performers: substituting technology by management in SMEs

  • Christian Rammer


  • Dirk Czarnitzki


  • Alfred Spielkamp


This paper investigates the impact of in-house R&D and innovation management practices on innovation success in small and medium-sized firms (SMEs). While there is little doubt about the significance of technology competence for generating successful innovations, inhouse R&D activities may be a particular challenge for SMEs due to high risk exposure, high fixed costs, high minimum investment and severe financial constraints. SMEs may thus opt for refraining from R&D and relying more on innovation management tools in order to achieve innovation success. We analyse whether such a strategy can pay off. Based on data from the German CIS we find that R&D activities are a main driver for innovation success if combined with external R&D, using external innovation sources or by entering into cooperation agreements. SMEs without in-house R&D can yield a similar innovation success if they effectively apply human resource management tools or team work to facilitate innovation processes.

(This abstract was borrowed from another version of this item.)

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

File URL:
Download Restriction: Access to full text is restricted to subscribers.

As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.

Article provided by Springer in its journal Small Business Economics.

Volume (Year): 33 (2009)
Issue (Month): 1 (June)
Pages: 35-58

in new window

Handle: RePEc:kap:sbusec:v:33:y:2009:i:1:p:35-58
Contact details of provider: Web page:

References listed on IDEAS
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.:

as in new window
  1. Heckman, James J, 1979. "Sample Selection Bias as a Specification Error," Econometrica, Econometric Society, vol. 47(1), pages 153-61, January.
  2. Rian Beise-Zee & Christian Rammer, 2006. "Local User-Producer Interaction in Innovation and Export Performance of Firms," Small Business Economics, Springer, vol. 27(2), pages 207-222, October.
  3. Christian Zeller, 2002. "Project Teams as Means of Restructuring Research and Development in the Pharmaceutical Industry," Regional Studies, Taylor & Francis Journals, vol. 36(3), pages 275-289.
  4. Elena Huergo & Jordi Jaumandreu, 2004. "How Does Probability of Innovation Change with Firm Age?," Small Business Economics, Springer, vol. 22(3_4), pages 193-207, 04.
  5. Bronwyn Hall & Adam Jaffe & Manuel Trajenberg, 2000. "Market Value and Patent Citations: A First Look," Economics Series Working Papers 2000-W17, University of Oxford, Department of Economics.
  6. repec:oup:qjecon:v:117:y:2002:i:1:p:339-376 is not listed on IDEAS
  7. Wolfgang Becker & Juergen Dietz, 2002. "R&D Cooperation and Innovation Activities of Firms - Evidence for the German Manufacturing Industry -," Discussion Paper Series 222, Universitaet Augsburg, Institute for Economics.
  8. Peters, Bettina & Lööf, Hans & Janz, Norbert, 2003. "Firm Level Innovation and Productivity: Is there a Common Story Across Countries?," ZEW Discussion Papers 03-26, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
  9. Licht, Georg & Zoz, Konrad, 1996. "Patents and R&D: an econometric investigation using applications for German, European and US patents by German companies," ZEW Discussion Papers 96-19, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
  10. Bronwyn Hall, 2004. "The financing of research and development," Chapters, in: Financial Systems, Corporate Investment in Innovation, and Venture Capital, chapter 2 Edward Elgar.
  11. Beise, Marian, 2004. "Lead markets: country-specific drivers of the global diffusion of innovations," Research Policy, Elsevier, vol. 33(6-7), pages 997-1018, September.
  12. James H. Love & Stephen Roper, 2004. "The organisation of innovation: collaboration, cooperation and multifunctional groups in UK and German manufacturing," Cambridge Journal of Economics, Oxford University Press, vol. 28(3), pages 379-395, May.
  13. Bruderl, Josef & Preisendorfer, Peter, 1998. " Network Support and the Success of Newly Founded Businesses," Small Business Economics, Springer, vol. 10(3), pages 213-25, May.
  14. Gerald Marschke & Jinyoung Kim & Sangjoon John Lee, 2004. "Relation of Firm Size to R&D Productivity," Discussion Papers 04-05, University at Albany, SUNY, Department of Economics.
  15. Mohnen, Pierre & Röller, Lars-Hendrik, 2001. "Complementarities in Innovation Policy," CEPR Discussion Papers 2712, C.E.P.R. Discussion Papers.
  16. Soete, Luc L. G., 1979. "Firm size and inventive activity : The evidence reconsidered," European Economic Review, Elsevier, vol. 12(4), pages 319-340, October.
  17. Arora, Ashish & Gambardella, Alfonso, 1994. "Evaluating technological information and utilizing it : Scientific knowledge, technological capability, and external linkages in biotechnology," Journal of Economic Behavior & Organization, Elsevier, vol. 24(1), pages 91-114, June.
  18. Alfonso Miranda & Sophia Rabe-Hesketh, 2006. "Maximum likelihood estimation of endogenous switching and sample selection models for binary, ordinal, and count variables," Stata Journal, StataCorp LP, vol. 6(3), pages 285-308, September.
  19. James H. Love & Stephen Roper & Giovanni Mangiarotti, 2006. "Organizing Innovation Complementarities between Cross-Functional Teams," DRUID Working Papers 06-27, DRUID, Copenhagen Business School, Department of Industrial Economics and Strategy/Aalborg University, Department of Business Studies.
  20. Mita Bhattacharya & Harry Bloch, 2004. "Determinants of Innovation," Small Business Economics, Springer, vol. 22(2), pages 155-162, 03.
  21. Rachel Griffith & Elena Huergo & Jacques Mairesse & Bettina Peters, 2006. "Innovation and Productivity Across Four European Countries," Oxford Review of Economic Policy, Oxford University Press, vol. 22(4), pages 483-498, Winter.
  22. Alfred Kleinknecht & Kees Van Montfort & Erik Brouwer, 2002. "The Non-Trivial Choice between Innovation Indicators," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 11(2), pages 109-121.
  23. Loof, Hans & Heshmati, Almas, 2002. "Knowledge capital and performance heterogeneity: : A firm-level innovation study," International Journal of Production Economics, Elsevier, vol. 76(1), pages 61-85, March.
  24. Belderbos, Rene & Carree, Martin A & Diederen, Bert & Lokshin, Boris & Veugelers, Reinhilde, 2003. "Heterogeneity in R&D Cooperation Strategies," CEPR Discussion Papers 4021, C.E.P.R. Discussion Papers.
  25. Mark Rogers, 2004. "Networks, Firm Size and Innovation," Small Business Economics, Springer, vol. 22(2), pages 141-153, 03.
  26. Lee, Chang-Yang & Sung, Taeyoon, 2005. "Schumpeter's legacy: A new perspective on the relationship between firm size and R&D," Research Policy, Elsevier, vol. 34(6), pages 914-931, August.
  27. Allen, Robert C., 1983. "Collective invention," Journal of Economic Behavior & Organization, Elsevier, vol. 4(1), pages 1-24, March.
  28. Dirk Czarnitzki, 2006. "Research And Development In Small And Medium-Sized Enterprises: The Role Of Financial Constraints And Public Funding," Scottish Journal of Political Economy, Scottish Economic Society, vol. 53(3), pages 335-357, 07.
  29. Hall, Bronwyn H & Griliches, Zvi & Hausman, Jerry A, 1986. "Patents and R and D: Is There a Lag?," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 27(2), pages 265-83, June.
  30. Mohnen, Pierre & Tiwari, Amaresh & Palm, Franz & Schim van der Loeff, Sybrand, 2007. "Financial Constraint and R&D Investment: Evidence from CIS," MERIT Working Papers 011, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
  31. Bruno Cassiman & Reinhilde Veugelers, 2002. "R&D Cooperation and Spillovers: Some Empirical Evidence from Belgium," American Economic Review, American Economic Association, vol. 92(4), pages 1169-1184, September.
Full references (including those not matched with items on IDEAS)

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

When requesting a correction, please mention this item's handle: RePEc:kap:sbusec:v:33:y:2009:i:1:p:35-58. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Sonal Shukla)

or (Christopher F. Baum)

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 references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link 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 profile, as there may be some citations waiting for confirmation.

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

This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.