Innovation barriers for small biotech, ICT and clean tech firms:Coping with knowledge leakage and legitimacy deficits
Innovative high-tech small and medium sized enterprises (SMEs) are thought to be drivers of economic renewal and growth. However, due to their limited size, SMEs face two fundamental innovation barriers: the risk that other organizations appropriate the returns to the newly created knowledge by SMEs (knowledge leakage), and a lack of understanding and recognition of their business on the part of potential stakeholders (legitimacy deficits). Based on a panel study of 196 SMEs this paper shows that biotech, ICT and clean tech firms choose different strategies to deal with knowledge leakage and legitimacy deficits. To prevent knowledge leakage, high-tech SMEs are very selective in choosing their R&D partners and collaborate with basic rather than applied technology developers. Furthermore, to gain organizational legitimacy, high-tech SMEs pursue activities that focus not only on product development but also on generating awareness and understanding of their technologies. �
|Date of creation:||23 Dec 2011|
|Date of revision:|
|Contact details of provider:|| Postal: |
Phone: (+31) 79 341 36 34
Fax: (+31) 79 341 50 24
Web page: http://www.entrepreneurship-sme.eu/
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Bougrain, Frederic & Haudeville, Bernard, 2002. "Innovation, collaboration and SMEs internal research capacities," Research Policy, Elsevier, vol. 31(5), pages 735-747, July.
- Soh, Pek-Hooi, 2003. "The role of networking alliances in information acquisition and its implications for new product performance," Journal of Business Venturing, Elsevier, vol. 18(6), pages 727-744, November.
- Jarillo, J. Carlos, 1989. "Entrepreneurship and growth: the strategic use of external resources," Journal of Business Venturing, Elsevier, vol. 4(2), pages 133-147, March.
- Delmar, Frederic & Shane, Scott, 2004. "Legitimating first: organizing activities and the survival of new ventures," Journal of Business Venturing, Elsevier, vol. 19(3), pages 385-410, May.
- Magnus Henrekson & Dan Johansson, 2010.
"Gazelles as job creators: a survey and interpretation of the evidence,"
Small Business Economics,
Springer, vol. 35(2), pages 227-244, September.
- Henrekson, Magnus & Johansson, Dan, 2008. "Gazelles as Job Creators – A Survey and Interpretation of the Evidence," Ratio Working Papers 117, The Ratio Institute.
- Henrekson, Magnus & Johansson, Dan, 2008. "Gazelles as Job Creators – A Survey and Interpretation of the Evidence," Working Paper Series 733, Research Institute of Industrial Economics.
- Teece, David J., 1986.
"Profiting from technological innovation: Implications for integration, collaboration, licensing and public policy,"
Elsevier, vol. 15(6), pages 285-305, December.
- Teece, David J., 1993. "Profiting from technological innovation: Implications for integration, collaboration, licensing and public policy," Research Policy, Elsevier, vol. 22(2), pages 112-113, April.
- Acs, Zoltan J. & Audretsch, David B., 1987. "Innovation in large and small firms," Economics Letters, Elsevier, vol. 23(1), pages 109-112.
- Kenneth Carlaw & Les Oxley & Paul Walker & David Thorns & Michael Nuth, 2006. "BEYOND THE HYPE: INTELLECTUAL PROPERTY AND THE KNOWLEDGE SOCIETY/KNOWLEDGE ECONOMY," Journal of Economic Surveys, Wiley Blackwell, vol. 20(4), pages 633-690, 09.
- Niosi, Jorge, 2003. "Alliances are not enough explaining rapid growth in biotechnology firms," Research Policy, Elsevier, vol. 32(5), pages 737-750, May.
- Zoltan Acs & Sameeksha Desai & Jolanda Hessels, 2008. "Entrepreneurship, economic development and institutions," Small Business Economics, Springer, vol. 31(3), pages 219-234, October.
- Malcomson, J.M., 1997.
"Contracts, hold-up and labor markets,"
Discussion Paper Series In Economics And Econometrics
9703, Economics Division, School of Social Sciences, University of Southampton.
- Rogerson, William P, 1992. "Contractual Solutions to the Hold-Up Problem," Review of Economic Studies, Wiley Blackwell, vol. 59(4), pages 777-93, October.
- Lipparini, Andrea & Sobrero, Maurizio, 1994. "The glue and the pieces: Entrepreneurship and innovation in small-firm networks," Journal of Business Venturing, Elsevier, vol. 9(2), pages 125-140, March.
- Tornikoski, Erno T. & Newbert, Scott L., 2007. "Exploring the determinants of organizational emergence: A legitimacy perspective," Journal of Business Venturing, Elsevier, vol. 22(2), pages 311-335, March.
- Garnsey, Elizabeth, 1998. "A Theory of the Early Growth of the Firm," Industrial and Corporate Change, Oxford University Press, vol. 7(3), pages 523-56, September.
- de Jong, Jeroen P.J. & Freel, Mark, 2010. "Absorptive capacity and the reach of collaboration in high technology small firms," Research Policy, Elsevier, vol. 39(1), pages 47-54, February.
- E. Wayne Nafziger, 2008. "Entrepreneurship and Development," Chapters, in: International Handbook of Development Economics, Volumes 1 & 2, chapter 26 Edward Elgar.
- Scherer, F. M., 2002. "The Free-Market Innovation Machine: Analyzing the Growth Miracle of Capitalism. By William J. Baumol. Princeton, NJ: Princeton University Press, 2002. Pp. xiv, 318. $35.00," The Journal of Economic History, Cambridge University Press, vol. 62(03), pages 912-913, September.
- Wustenhagen, Rolf & Wolsink, Maarten & Burer, Mary Jean, 2007. "Social acceptance of renewable energy innovation: An introduction to the concept," Energy Policy, Elsevier, vol. 35(5), pages 2683-2691, May.
- Spence, Michael, 1984. "Cost Reduction, Competition, and Industry Performance," Econometrica, Econometric Society, vol. 52(1), pages 101-21, January.
When requesting a correction, please mention this item's handle: RePEc:eim:papers:h201115. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Webmaster EIM)
If references are entirely missing, you can add them using this form.