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Overcoming Failure: Abandonments and Delays of Innovation Projects in SMEs


  • Sonja Radas
  • Ljiljana Bozic


Innovation development is a very complex and risky activity that requires adequate financial resources and appropriate skills and knowledge. Due to the complexity of the development process, innovation project can be either delayed or abandoned. In this paper we investigate factors that make it possible for small and medium enterprises (SME) that experienced delays or abandonment to continue innovating. While in SMEs weak resources and capabilities contribute to occurrence of development problems, this study suggests that SMEs can enhance their efficiency to produce innovative output by improving their capabilities (external or internal). These capabilities augment the value of resources and can be acquired through external collaboration, non-technological innovation or former innovations. These capabilities have larger effect on the development of new services than on new products.

Suggested Citation

  • Sonja Radas & Ljiljana Bozic, 2012. "Overcoming Failure: Abandonments and Delays of Innovation Projects in SMEs," Industry and Innovation, Taylor & Francis Journals, vol. 19(8), pages 649-669, November.
  • Handle: RePEc:taf:indinn:v:19:y:2012:i:8:p:649-669 DOI: 10.1080/13662716.2012.739769

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    References listed on IDEAS

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    2. Piergiuseppe Morone, 2006. "The two faces of knowledge diffusion: the Chilean case," Journal of International Development, John Wiley & Sons, Ltd., vol. 18(1), pages 29-50.
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    4. Quatraro, Francesco, 2010. "Knowledge coherence, variety and economic growth: Manufacturing evidence from Italian regions," Research Policy, Elsevier, vol. 39(10), pages 1289-1302, December.
    5. John M. Quigley, 1998. "Urban Diversity and Economic Growth," Journal of Economic Perspectives, American Economic Association, vol. 12(2), pages 127-138, Spring.
    6. Ron Boschma & Simona Iammarino, 2009. "Related Variety, Trade Linkages, and Regional Growth in Italy," Economic Geography, Clark University, vol. 85(3), pages 289-311, July.
    7. Matthias Buerger & Uwe Cantner, 2011. "The regional dimension of sectoral innovativeness: An empirical investigation of two specialized suppliers and two science‐based industries," Papers in Regional Science, Wiley Blackwell, vol. 90(2), pages 373-393, June.
    8. Ron Boschma & Asier Minondo & Mikel Navarro, 2012. "Related variety and regional growth in Spain," Papers in Regional Science, Wiley Blackwell, vol. 91(2), pages 241-256, June.
    9. Bowsher, Clive G., 2002. "On testing overidentifying restrictions in dynamic panel data models," Economics Letters, Elsevier, vol. 77(2), pages 211-220, October.
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    Cited by:

    1. Enrico Guzzini & Donato Iacobucci, 2014. "The dark side of R&D collaborations," Working Papers 1405, c.MET-05 - Centro Interuniversitario di Economia Applicata alle Politiche per L'industria, lo Sviluppo locale e l'Internazionalizzazione.
    2. repec:kap:jtecht:v:42:y:2017:i:4:d:10.1007_s10961-016-9554-8 is not listed on IDEAS
    3. Edmundo Escrivão Filho & Alexandre Farias Albuquerque & Marcelo Seido Nagano & Luiz Adalberto Philippsen Junior & Jair de Oliveira, 2017. "Identifying SME mortality factors in the life cycle stages: an empirical approach of relevant factors for small business owner-managers in Brazil," Journal of Global Entrepreneurship Research, Springer;UNESCO Chair in Entrepreneurship, vol. 7(1), pages 1-15, December.
    4. Leoncini, Riccardo, 2016. "Learning-by-failing. An empirical exercise on CIS data," Research Policy, Elsevier, vol. 45(2), pages 376-386.

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