The intricate relation between investments in scientific research, technological development, tacit knowledge resources, and technological innovations are generally recognized to be an important driver for the competitive advantage of firms. There is empirical evidence that a firm's RD efforts may directly improve its ability to innovate (Griliches, 1979), and indirectly help the firm to absorb outside knowledge (Cohen and Levinthal, 1990), both of which have a profound impact on the firm's productivity [Hall, 1996]. The support of research is acknowledged to be a critical element of a firm's innovation ability through the (semi-)open and continuous interaction that takes place with other enterprises (coopetition - Brandenburger, Nalebuff, 1996) and/or with external information sources, such as universities and other public research institutions.The purpose of our study is to analyze the factors that may favor survival and growth of SMEs, and report their propensity to create, manage and share innovation.After defining the research guidelines according to SMEs (Small and Medium Enterprises) main literature, we tested our hypothesis on the basis of the data collected in a sample of Italian SME's with an empirical survey.Our analysis focused on SMEs because of their importance in the Italian economic system. In fact, for all sectors, the percentage of SMEs (up to 49 employees) is higher than the corresponding European categories.SMEs have several points of strength but also several points of weakness . The first includes system areas like "industrial districts". The presence of integrated SME networks, entrepreneurial dynamism, competitiveness in terms of product quality, cooperation between enterprises and the location in decentralized areas have created territorial competitiveness and collective efficiency due to positive externalities. In this context we also examine the process of innovation as the result of the firm networking activity.
Innovation and competiveness factors of SME's. An empirical survey
PIRONTI, Marco
2006-01-01
Abstract
The intricate relation between investments in scientific research, technological development, tacit knowledge resources, and technological innovations are generally recognized to be an important driver for the competitive advantage of firms. There is empirical evidence that a firm's RD efforts may directly improve its ability to innovate (Griliches, 1979), and indirectly help the firm to absorb outside knowledge (Cohen and Levinthal, 1990), both of which have a profound impact on the firm's productivity [Hall, 1996]. The support of research is acknowledged to be a critical element of a firm's innovation ability through the (semi-)open and continuous interaction that takes place with other enterprises (coopetition - Brandenburger, Nalebuff, 1996) and/or with external information sources, such as universities and other public research institutions.The purpose of our study is to analyze the factors that may favor survival and growth of SMEs, and report their propensity to create, manage and share innovation.After defining the research guidelines according to SMEs (Small and Medium Enterprises) main literature, we tested our hypothesis on the basis of the data collected in a sample of Italian SME's with an empirical survey.Our analysis focused on SMEs because of their importance in the Italian economic system. In fact, for all sectors, the percentage of SMEs (up to 49 employees) is higher than the corresponding European categories.SMEs have several points of strength but also several points of weakness . The first includes system areas like "industrial districts". The presence of integrated SME networks, entrepreneurial dynamism, competitiveness in terms of product quality, cooperation between enterprises and the location in decentralized areas have created territorial competitiveness and collective efficiency due to positive externalities. In this context we also examine the process of innovation as the result of the firm networking activity.
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