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

Author Info

  • Christian Rammer

    ()

  • Dirk Czarnitzki

    ()

  • Alfred Spielkamp

    ()

Abstract

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.)

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File URL: http://hdl.handle.net/10.1007/s11187-009-9185-7
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Article provided by Springer in its journal Small Business Economics.

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

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Handle: RePEc:kap:sbusec:v:33:y:2009:i:1:p:35-58
Contact details of provider: Web page: http://www.springerlink.com/link.asp?id=100338

Keywords: Innovation success; R&D; Innovation management; SMEs; L25; L26; O31; O32; O38; O47;

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Find related papers by JEL classification:
  • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
  • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
  • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D
  • O38 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Government Policy
  • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence

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