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ICT and Innovation Activities: Evidence for UK SMEs


  • Dolores Añon Higón

    (Departamento de Economía Aplicada II, Universidad de Valencia)


There is a continuous commitment of policy makers in the UK to supporting innovation in small and medium firms. For these policy initiatives to be successful, an understanding of the factors driving innovation activities is required. In this study, we focus on the role that Information and Communication Technologies (ICT) play in the innovation performance of UK small and medium sized enterprises (SMEs). Using data drawn from the 2004 Annual Small Business Survey (ASBS) database, we show that ICT operate primarily as efficiency-enhancing technologies, although specific market oriented applications (i.e. website development) exhibit a potential to create competitive advantage through product innovation.

Suggested Citation

  • Dolores Añon Higón, 2010. "ICT and Innovation Activities: Evidence for UK SMEs," Working Papers 1002, Department of Applied Economics II, Universidad de Valencia.
  • Handle: RePEc:eec:wpaper:1002

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    References listed on IDEAS

    1. Nola Hewitt-Dundas, 2006. "Resource and Capability Constraints to Innovation in Small and Large Plants," Small Business Economics, Springer, vol. 26(3), pages 257-277, April.
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    More about this item


    ICT; Product Innovation; Process Innovation; SME; Bivariate Probit;
    All these keywords.

    JEL classification:

    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General

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