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Developing innovation in small-medium suppliers: evidence from the Italian car industry

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Abstract

Small-medium firms represent more than 90% of Italian firms, 50% of Italian production and 2/3 of employment and they need support in innovation process especially in known technology. The small-medium firm, in fact, operates chiefly in medium to low technology sectors, but cannot for this reason reject innovation. Suppliers are often too small to make the necessary investments in training, computer systems, research and development to make an effective partnership with final producers. Within this scenario the behaviour of the small-medium car suppliers is quite different, vertical disintegration, reorganisation of the supply base and the development of buyer-supplier relationships have undoubtedly changed the role of suppliers in the carmaker’s strategies.

Suggested Citation

  • Giuseppe Calabrese, 1999. "Developing innovation in small-medium suppliers: evidence from the Italian car industry," CERIS Working Paper 199904, Institute for Economic Research on Firms and Growth - Moncalieri (TO) ITALY -NOW- Research Institute on Sustainable Economic Growth - Moncalieri (TO) ITALY.
  • Handle: RePEc:csc:cerisp:199904
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    1. Imrie, R & Morris, J, 1992. "A review of recent changes in buyer-supplier relations," Omega, Elsevier, vol. 20(5-6), pages 641-652.
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    JEL classification:

    • L2 - Industrial Organization - - Firm Objectives, Organization, and Behavior
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D
    • L62 - Industrial Organization - - Industry Studies: Manufacturing - - - Automobiles; Other Transportation Equipment; Related Parts and Equipment

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