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Barriers to innovation in SMEs: Can the internationalization of R&D mitigate their effects?

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  • Tiwari, Rajnish
  • Buse, Stephan

Abstract

Technological advancements, especially in Information and Communication Technologies (ICT) have enhanced greatly the competition spurred by the globalization of the world economies. Even small and medium-sized enterprises (SMEs) are no more immune to the challenges that the globalization brings about. It is a remarkable, and in certain instances worrisome, situation since SMEs play a key-role in most economies, in that they constitute the largest business block and provide the bulk of employment. However, opportunities presented by the globalization and the entwined, simultaneous pressure to innovate opens for SMEs new arenas to engage in what we may call are global innovation activities so as to gain, retain, and further strengthen the competitive position. This pressure to go for global innovation is enhanced by given socio-demographic factors, e.g. shortage of skilled labour, in many industrialized countries. This paper presents the findings of a survey by the authors carried out in the Metropolitan Region of Hamburg in Germany to identify barriers to innovation in selected industries and to work out solutions. The project RIS-Hamburg was initiated by the State Ministry of Economic and Labour Affairs in Hamburg and co-financed by the European Union (EU). The findings of this survey are here matched against perceived opportunities and challenges presented by global innovation.

Suggested Citation

  • Tiwari, Rajnish & Buse, Stephan, 2007. "Barriers to innovation in SMEs: Can the internationalization of R&D mitigate their effects?," Working Papers 50, Hamburg University of Technology (TUHH), Institute for Technology and Innovation Management.
  • Handle: RePEc:zbw:tuhtim:50
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    References listed on IDEAS

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    1. Spielkamp, Alfred & Rammer, Christian, 2006. "Balanceakt Innovation: Erfolgsfaktoren im Innovationsmanagement kleiner und mittlerer Unternehmen," ZEW Dokumentationen 06-04, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
    2. Sofka, Wolfgang, 2006. "Innovation Activities Abroad and the Effects of Liability of Foreignness: Where it Hurts," ZEW Discussion Papers 06-029, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
    3. Tiwari, Rajnish & Buse, Stephan & Herstatt, Cornelius, 2007. "Innovation via global route: Proposing a reference model for chances and challenges of global innovation processes," Working Papers 49, Hamburg University of Technology (TUHH), Institute for Technology and Innovation Management.
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    Citations

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    Cited by:

    1. Nader Ale Ebrahim & Shamsuddin Ahmed & Zahari Taha, 2010. "Critical Factors for New Product Developments in SMEs Virtual Team," Post-Print hal-00593363, HAL.
    2. Monika Walicka, 2014. "INNOVATION TYPES AT SMEs AND EXTERNAL INFLUENCING FACTORS," "e-Finanse", University of Information Technology and Management, Institute of Financial Research and Analysis, vol. 10(3), pages 73-81, December.
    3. Ozlem CETINKAYA BOZKURT & Adnan KALKAN, 2014. "Business Strategies of SME’s, Innovation Types and Factors Influencing Their Innovation: Burdur Model," Ege Academic Review, Ege University Faculty of Economics and Administrative Sciences, vol. 14(2), pages 189-198.
    4. Vitaliy Roud & Valeriya Vlasova, 2016. "Firm-Level Evidence on the Cooperative Innovation Strategies in Russian Manufacturing," HSE Working papers WP BRP 63/STI/2016, National Research University Higher School of Economics.
    5. Nader Ale Ebrahim & Shamsuddin Ahmed & Zahari Taha, 2010. "SMEs; Virtual Research and Development (R&D) Teams and New Product Development: A Literature Review," Post-Print hal-00593362, HAL.
    6. Sorin Briciu & Constantin Groza & Alina Putan, 2012. "Small Business Development During The Crisis," Annales Universitatis Apulensis Series Oeconomica, Faculty of Sciences, "1 Decembrie 1918" University, Alba Iulia, vol. 2(14), pages 1-2.
    7. Nader Ale Ebrahim & Shamsuddin Ahmed & Zahari Taha, 2009. "Virtual R & D teams in small and medium enterprises: A literature review," Post-Print hal-00593358, HAL.
    8. Nader Ale Ebrahim & Shamsuddin Ahmed & Zahari Taha, 2010. "Virtual R&D Teams and SMEs Growth: A Comparative Study Between Iranian and Malaysian SMEs," Post-Print hal-00593364, HAL.
    9. Veland Ramadani & Hyrije Abazi-Alili & Léo-Paul Dana & Gadaf Rexhepi & Sadudin Ibraimi, 2017. "The impact of knowledge spillovers and innovation on firm-performance: findings from the Balkans countries," International Entrepreneurship and Management Journal, Springer, vol. 13(1), pages 299-325, March.
    10. Herstatt, Cornelius & Tiwari, Rajnish & Buse, Stephan, 2008. "India's National Innovation System: Key elements and corporate perspectives," Working Papers 51, Hamburg University of Technology (TUHH), Institute for Technology and Innovation Management.
    11. Radostina Popova & Diana Ivanova, 2012. "Innovativeness of the Small and Medium-Sized Enterprises Manufacturing Furniture," Economic Studies journal, Bulgarian Academy of Sciences - Economic Research Institute, issue 3, pages 54-67.
    12. Irene Fafaliou & Marinos Stefanitsis & Aelita Skarzauskiene, 2014. "The Propensity of SMEs to Innovate: A Cross – Country Outlook," SPOUDAI Journal of Economics and Business, SPOUDAI Journal of Economics and Business, University of Piraeus, vol. 64(3), pages 94-115, July-Sept.
    13. Pietrasieñski Pawe³ & Œlusarczyk Beata, 2015. "Internationalization Of Small And Medium Enterprises – Empirical Research Review On Barriers To Entry Into Foreign Markets," Polish Journal of Management Studies, Czestochowa Technical University, Department of Management, vol. 11(1), pages 113-123, June.
    14. Horbach, Jens, 2016. "The impact of resource efficiency measures on performance in small and medium-sized enterprises," Ruhr Economic Papers 643, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.

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