Knowledge Creation and Open Innovation in High-Technology SMEs

The aim of this chapter is to present findings on knowledge creation and open innovation (OI) in small and medium-sized enterprises (SMEs) in Iceland. The main focus is on how these SMEs deal with knowledge creation, knowledge sharing and storage, and how customers and other external stakeholders are involved in the innovation process. The research consists of three case studies in knowledge-intensive enterprises in Iceland. Semi-structured interviews were taken with managers and key employees who deal with knowledge creation processes and innovation.In all the three companies, the knowledge creation process is similar: Groups of employees work on the development of new solutions by experimenting and sharing knowledge through brainstorming and discussing ideas, which can be described as collaborative learning. Knowledge sharing is mainly through personalization strategy, although the product development process tends to be intensively documented. Customers and external stakeholders are rarely consulted until the testing of software programs at the end of the process. The findings are in accordance with other findings that high-tech companies tend to prefer inside-out strategies of open innovation. The findings are also in line with earlier studies which show that SMEs use OI more often in the later stages of the innovation process.