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Combinatorial innovation modes in SMEs: mechanisms integrating STI processes into DUI mode learning and the role of regional innovation policy

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  • Harm Alhusen
  • Tatjana Bennat

Abstract

Innovation processes comprise interactive learning mechanisms by combining different knowledge sources. Using a set of 80 exploratory interviews with small and medium-sized enterprises (SMEs) and regional innovation consultants, this paper analyzes the mechanisms through which firms combine an STI (science-technology – innovation) and DUI (learning-by-doing, -using and -interacting) mode of innovation. We show that the innovation mode concept ought to be applied as a continuum of combinations. Thus, SMEs integrate STI-based knowledge into DUI-routines through mechanisms with varying levels of complexity. The described mechanisms differ with respect to their effects on innovativeness, the required absorptive capacities, and costs incurred. Depending on the level of integration, cognitive, organizational and financial barriers impede a combination of innovation modes. At this point, regional innovation consultants can affect a successful combination. We derive implications for innovation policy regarding absorptive capacities in SMEs, showing that policy support extends beyond financial services.

Suggested Citation

  • Harm Alhusen & Tatjana Bennat, 2021. "Combinatorial innovation modes in SMEs: mechanisms integrating STI processes into DUI mode learning and the role of regional innovation policy," European Planning Studies, Taylor & Francis Journals, vol. 29(4), pages 779-805, April.
    • Handle: RePEc:taf:eurpls:v:29:y:2021:i:4:p:779-805
    DOI: 10.1080/09654313.2020.1786009
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    Cited by:

    1. Beynon, Malcolm & Pickernell, David & Battisti, Martina & Jones, Paul, 2024. "A panel fsQCA investigation on European regional innovation," Technological Forecasting and Social Change, Elsevier, vol. 199(C).
    2. Radicic, Dragana & Petković, Saša, 2023. "Impact of digitalization on technological innovations in small and medium-sized enterprises (SMEs)," Technological Forecasting and Social Change, Elsevier, vol. 191(C).
    3. Thomä, Jörg & Bischoff, Thore S., 2022. "From automation to databased business models - digitalization and its links to innovation in small and medium-sized enterprises," ifh Working Papers 31/2022, Volkswirtschaftliches Institut für Mittelstand und Handwerk an der Universität Göttingen (ifh), revised 2022.
    4. Runst, Petrik & Thomä, Jörg, 2024. "Risk-reward trade-offs: Modes of innovation and economic performance of young firms," ifh Working Papers 43/2024, Volkswirtschaftliches Institut für Mittelstand und Handwerk an der Universität Göttingen (ifh).
    5. Reher, Leonie & Runst, Petrik & Thomä, Jörg & Bizer, Kilian, 2024. "Measuring non-R&D drivers of innovation: The case of SMEs in lagging regions," ifh Working Papers 45/2024, Volkswirtschaftliches Institut für Mittelstand und Handwerk an der Universität Göttingen (ifh).
    6. Silje Haus-Reve & Rune Dahl Fitjar & Andrés Rodríguez-Pose, 2023. "DUI it yourself: Innovation and activities to promote learning by doing, using, and interacting within the firm," Industry and Innovation, Taylor & Francis Journals, vol. 30(8), pages 1008-1028, September.
    7. Simms, Christopher & Frishammar, Johan, 2024. "Technology transfer challenges in asymmetric alliances between high-technology and low-technology firms," Research Policy, Elsevier, vol. 53(3).
    8. Matthies, Eike & Thomä, Jörg & Bizer, Kilian, 2022. "A hidden source of innovation? Revisiting the impact of initial vocational training on technological innovation," ifh Working Papers 33/2022, Volkswirtschaftliches Institut für Mittelstand und Handwerk an der Universität Göttingen (ifh), revised 2022.
    9. Runst, Petrik & Thomä, Jörg, 2023. "Innovations- und Wachstumspfade junger Unternehmen," ifh Forschungsberichte 21, Volkswirtschaftliches Institut für Mittelstand und Handwerk an der Universität Göttingen (ifh).
    10. Parrilli, M. Davide & Balavac-Orlić, Merima & Radicic, Dragana, 2023. "Environmental innovation across SMEs in Europe," Technovation, Elsevier, vol. 119(C).
    11. Hädrich, Tobias & Reher, Leonie & Thomä, Jörg, 2023. "Solving the puzzle? An innovation mode perspective on lagging regions," ifh Working Papers 42/2023, Volkswirtschaftliches Institut für Mittelstand und Handwerk an der Universität Göttingen (ifh).

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