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Customers as Predictors of Rent Returns to Innovation and Small Firms – an exploratory study

  • Tim Mazzarol

    (UWA Business School - University of Western Australia)

  • Sophie Reboud

    ()

    (CEREN - Centre de Recherche sur l'Entreprise - Groupe ESC Dijon Bourgogne)

Registered author(s):

    Small to medium enterprises (SME) are frequently associated with high levels of innovation. However, it is difficult for such firms to fully assess the merits of a particular innovation. This study examined the risk-return profile of future investment in innovation by SME with respect to anticipated ‘rent' or financial returns. A survey of highly innovative SME was undertaken that examined management perceptions of the key strategic influences on rent returns. Regression analysis suggests that the firms' assessment of the rent returns from their innovation may be influenced by the value it is likely to deliver to the customer, the customer's expected use of the innovation to generate new sales and the ease of integrating the new innovation into existing technologies. The findings have implications for how entrepreneurs from early stage ventures are assisted.

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    File URL: http://hal.archives-ouvertes.fr/docs/00/47/24/38/PDF/IJIEM_MazzReboud_paper_non_formate.pdf
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    Paper provided by HAL in its series Post-Print with number hal-00472438.

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    Date of creation: 2005
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    Publication status: Published, Int. Journal of Entrepreneurship and Innovation Management, 2005, 5, 5/6, 483-494
    Handle: RePEc:hal:journl:hal-00472438
    Note: View the original document on HAL open archive server: http://hal.archives-ouvertes.fr/hal-00472438/en/
    Contact details of provider: Web page: https://hal.archives-ouvertes.fr/

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    1. Martin, Stephen & Scott, John T., 2000. "The nature of innovation market failure and the design of public support for private innovation," Research Policy, Elsevier, vol. 29(4-5), pages 437-447, April.
    2. Rinaldo Evangelista & Tore Sandven & Giorgio Sirilli & Keith Smith, 1998. "Measuring Innovation in European Industry," International Journal of the Economics of Business, Taylor & Francis Journals, vol. 5(3), pages 311-333.
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