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Innovation in Small and Medium-Sized Enterprises: A Study of Businesses in New South Wales, Australia

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This paper examines the process of innovation within SMEs, focusing on a sample of firms in New South Wales, Australia. The trend of the last several decades towards increased integration of global markets, or globalization, has meant that many firms are experiencing continuously increasing pressure to remain viable as their markets expand, and they begin competing with a larger number of firms. SMEs, in particular, are vulnerable to this pressure, since they tend to be disadvantaged relative to larger firms that generally have better access to funding and other resources. The ways in which SMEs operate to remain economically viable, and contribute to economic performance, is of especial interest to governments given the prominent roles that they play in most economies. One way of doing so is through innovation. In this paper, we present a more complex model of the innovation process than the traditional linear model involving R&D investment, what we term the "Ripple Effect Model", building upon recent developments in the literature. The Ripple-Effect Model appears to be substantially supported.

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  • Olsen, Jane & Lee, Boon-Chye & Hodgkinson, Ann, 2006. "Innovation in Small and Medium-Sized Enterprises: A Study of Businesses in New South Wales, Australia," Economics Working Papers wp06-04, School of Economics, University of Wollongong, NSW, Australia.
  • Handle: RePEc:uow:depec1:wp06-04
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    File URL: http://www.uow.edu.au/content/groups/public/@web/@commerce/@econ/documents/doc/uow012217.pdf
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    Cited by:

    1. Thayaparan Gajendran & Graham Brewer & Siegfried Gudergan & Shankar Sankaran, 2014. "Deconstructing dynamic capabilities: the role of cognitive and organizational routines in the innovation process," Construction Management and Economics, Taylor & Francis Journals, vol. 32(3), pages 246-261, March.
    2. Jennifer Percival & Brian Cozzarin, 2008. "Complementarities Affecting the Returns to Innovation," Industry and Innovation, Taylor & Francis Journals, vol. 15(4), pages 371-392.
    3. Roxana Adam, 2015. "The Romanian Product Innovative Enterprises - A Statistical Analysis Using "R"," Global Economic Observer, "Nicolae Titulescu" University of Bucharest, Faculty of Economic Sciences;Institute for World Economy of the Romanian Academy, vol. 3(1), pages 101-107, May.

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    Keywords

    small and medium enterprises; innovation; New South Wales; Australia;

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