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Innovation activity in the SMEs and local environment

  • Esa Storhammar

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  • Timo Tohmo
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    ABSTRACT The aim of this study is to clarify what factors affect the innovation activity of small and medium-sized enterprises (SMEs), and especially the effect of regional factors. Innovations are seen as central phenomena on both micro and macro levels in economy. However, we know little about the formation, development and diffusion of innovations in different milieus. The different types of branch and enterprise structure might be the essential factor that accounts for regional differences in innovation activities. Many studies show remarkable differences between branches. Additionally, the resources of firms give an unequal starting point for innovation activities. Our study observed that the differences between regions were smaller than anticipated. It also found the innovation profiles in different areas to be fairly convergent.

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    File URL: http://www-sre.wu.ac.at/ersa/ersaconfs/ersa10/ERSA2010finalpaper240.pdf
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    Paper provided by European Regional Science Association in its series ERSA conference papers with number ersa10p240.

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    Date of creation: Sep 2011
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    Handle: RePEc:wiw:wiwrsa:ersa10p240
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    7. Clive Lawson & Edward Lorenz, 1999. "Collective Learning, Tacit Knowledge and Regional Innovative Capacity," Regional Studies, Taylor & Francis Journals, vol. 33(4), pages 305-317.
    8. Muller, Emmanuel & Zenker, Andrea, 2001. "Business services as actors of knowledge transformation: the role of KIBS in regional and national innovation systems," Research Policy, Elsevier, vol. 30(9), pages 1501-1516, December.
    9. John Glasson & Andrew Chadwick & Helen Lawton Smith, 2004. "Defining, explaining and managing high-tech growth: The case of Oxfordshire," European Planning Studies, Taylor & Francis Journals, vol. 14(4), pages 503-524, November.
    10. Littunen, Hannu & Tohmo, Timo, 2003. " The High Growth in New Metal-Based Manufacturing and Business Service Firms in Finland," Small Business Economics, Springer, vol. 21(2), pages 187-200, September.
    11. Audretsch, David B. & Feldman, Maryann P., 2004. "Knowledge spillovers and the geography of innovation," Handbook of Regional and Urban Economics, in: J. V. Henderson & J. F. Thisse (ed.), Handbook of Regional and Urban Economics, edition 1, volume 4, chapter 61, pages 2713-2739 Elsevier.
    12. Maskell, Peter & Malmberg, Anders, 1999. "Localised Learning and Industrial Competitiveness," Cambridge Journal of Economics, Oxford University Press, vol. 23(2), pages 167-85, March.
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