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Small firms, R&D, technology and innovation in the UK: a literature review
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[Author vitae]
a
Centre for Research in Innovation Management, University of Brighton, Brighton BN1
9PH, UK
Abstract
The importance of small and medium-sized enterprises (SMEs) in economic growth has
made them a central element in much recent policymaking. Of particular interest have
been policies designed to promote and facilitate the operation of the innovation process
within SMEs, and there has been substantial expansion of this kind of effort. Despite this
interest, the knowledge base about how SMEs actually undertake innovative activities
remains limited. This paper reports on a literature survey of UK work over the past
decade and tries to characterise the state of knowledge about SMEs and innovation. It
concludes with a discussion of gaps and weaknesses in the literature and some
requirements for future research in this field.
Article Outline
1.
Introduction
2.
Coverage and methodology
3.
The SME/R&D/innovation literature: some general observations
3.1. Mixing service sector and industrial SMEs together in the sample population
3.2. Narrow focus on selected high-technology sectors
3.3. Inadequate treatment of innovation
3.4. Need for a benchmark survey
4.
SMEs and innovation — key themes
4.1. Innovation is widespread ... but does it contribute to profitability or success?
4.2. Some common features of the SMEs' R&D and innovative effort
4.3. The importance of internal factors
4.4. Qualified scientists and engineers (QSEs) and owner managers as key sources
of innovative effort
4.5. Other internal factors
4.6. Typologies of founders linked to innovation
4.7. The psychology of entrepreneurs
4.8. The role of new technology-based firms (NTBFs)
5.
Some contradictory findings
5.1. Impact of macro-economic conditions
5.2. Finance as a constraint on innovative effort
5.3. External linkages and SMEs' innovative strength and competitiveness
6.
SME policy interventions: are they working?
7.
Conclusions
Acknowledgements
References
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