Synopsis: Education:


INNOVATION AND SMEs BARRIERS TO INNOVATION IN SMEs.pdf

Technology and Innovation Management W o r k i n g P a p e r Hamburg University of Technology Schwarzenbergstr. 95, D-21073

HAMBURG UNIVERSITY OF TECHNOLOGY (TUHH) Page 1 of 31 Knowledge for Growth Industrial Research & Innovation (IRI) Barriers to Innovation in SMES:

By Rajnish Tiwari and Stephan Buse Hamburg University of Technology (TUHH) Research Project Global Innovation Institute of technology and Innovation Management Schwarzenbergstr. 95, D-21073 Hamburg

20 4. 1. 4 Learning from Lead Markets...20 4. 2 Leveraging Cost Advantages...20 4. 2. 1 Cheaper Costs for (Skilled) Labour...

However, experienced skilled labour was generally difficult to find. 71%71%21%36%14%7%29%14%0%20%40%60%80%Diploma-holders Engineers

Local adaptation Learning from lead markets Access to know-how Cost reduction Regulatory Env. at home Not important very important Figure 11:

and/or universities and specialized research institutions (here jointly referred to as universities) at home or abroad;

and/or their willingness to cooperate, with universities abroad. Many survey participants expressed their desire to cooperate with universities on an international scale.

Over onethird of all such SMES however cited financial constraints as being a major hurdle for the cooperation.

Problems in International Cooperation with Universities The discussion above has brought to fore the chances and challenges that firms,

2004) b) Lack of student interest in engineering and natural sciences (see IWD (2007)) In Germany alone firms are facing a severe crunch of skilled labour,

Germany's Federal Ministry of Education and Research (BMBF) in its latest report on the country's technological performance expects a shortfall of 335,000 university graduates,

is coupled with another challenge, namely the decline in the number of science and technology (S&t) students,

. While countries such as China and India are producing a large number of S&t graduates. In China, 61%of undergraduates are studying for a science or engineering degree.

Also as far as the quality of the higher-education is concerned many emerging countries around the globe, especially in Asia and Eastern europe

are able to produce world-class graduates. In fact, 3 of the top-5 Asian schools for S&t are located in India (EIU, 2004.

With 14 million young university graduates (with seven years or less of work experience) India's talent pool is estimated to be the largest worldwide, overlapping Chinese talent pool by 50%and that of the USA by 100

Another study by KPMG (2007) also confirmed this finding. 4. 1. 4 Learning from Lead Markets Unsaturated,

and learning curve effects), they should reconsider the market entry. Domestic Outsourcing (Third-party provider) Internal Outsourcing (Independent R&d division) Offshore Outsourcing (Third-party provider) Captive Offshoring (International subsidiary) Domestic International Location

however need further ascertainment and are set to be examined by our further research under the aegis of Research Project Global Innovation (RPGI) at Institute of technology and Innovation Management at Hamburg University of Technology (TUHH).

Ergebnisse einer empirischen Untersuchung in ausgewählten Branchen, Hamburg University of Technology, online: http://www. tuhh. de/tim/ris-hamburg/befragung. html, last accessed:

Konzeption der empirischen Untersuchung in ausgewählten Branchen, Hamburg University of Technology, online: http://www. tuhh. de/tim/ris-hamburg/befragung. html, last accessed:

Innovationsmanagement in kleinen und mittleren Unternehmen, Working Paper No. 7, Hamburg University of Technology. Ylinenpää, H. 1998:


INNOVATION AND SMEs BOLOGNA 2000 .pdf

Better co-operation and access to government-supported research centres including, for example, universities was mentioned also as a useful step that could be taken to promote innovation by SMES.

There was thus broad agreement in the survey for public support for basic education, for financial assistance with SME training,

and for promoting greater co-operation and exchanges between business and universities. 4 12. Finally, in a refrain that continued throughout the policy recommendations, many SME organisations suggested that the climate for research and development would be improved

How can governments better support the diffusion of technology between technical universities (and highschools) and SMES?

Encourage cooperative agreements with governmentpaid R&d infrastructure (universities, research institutes. Lack of qualified personnel Foster links between universities and SMES.

Liberalise the hiring of qualified foreign workers. Enhance co-operation between schools, entrepreneurs and branch organisations.


INNOVATION AND SMEs CASE OF MALAYSIAN.pdf

and learning activities but also be a part of designing activities (Wilhelmsson & Döös, 2009, Kianto, 2008).

external collaborative linkages between SMES and research and academic institutions that could help build the capacities

Harvard Business school Press. 5 Hamel, G. 2002. Leading the revolution: How to thrive in turbulent times by making innovation a way of life.

Harvard Business school Press. 6 Grant, R. M. 2010. Contemporary strategy analysis (7th ed.).West sussex, UK:

Action learning for strategic innovation in mature organizations: Key cognitive, design and contextual considerations. Action Learning:

Research and Practice, 2 (1), 27-48.10 Orlikowski, W. 2010) Practice in research: phenomenon, perspective and philosophy.

Gambridge University Press. pp. 23 33.11 Tsoukas, H. and Vladimirou, E. 2002. What is organizational knowledge?


INNOVATION AND SMEs HORIZON 2020.pdf

Peer learning of innovation agencies...18 INNOSUP 6 2015: Capitalising the full potential of online-collaboration for SME innovation support...

peer-learning and uptake of new approaches. In addition several actions will focus on the identification further development and dissemination of skills and expertise among SMES.

At least 25 national IP offices in EU Member States and countries associated to Horizon 2020 participate actively in the learning

lump-sum grants (typically below EUR 10.000) that support SMES to contract universities, R&d service providers or private consultants to either conduct small innovation projects or to explore the feasibility of larger ones.

Peer learning of innovation agencies Specific challenge: Innovation support agencies, i e. the regional and national agencies that design and/or implement innovation support programmes for SMES are important intermediaries for SME innovation.

2009-2012) has made some significant contributions to formulating the requirements for a permanent learning mechanism for SME innovation support agencies16:

learning activities have to be based on clear methodologies and they have to be driven demand, launched at the moment agencies themselves recognise the need to revise programme formats.

Furthermore peer learning activities need to benefit from a secretariat or an animation structure that assures horizontal flow of information among interested agencies.

and a'twinning+'methodology that combines elements of traditional peer reviews and twinning in small learning groups of interested agencies.

It is the objective of this action to make available to national and regional innovation agencies these two methodologies as elements of a permanent peer learning environment

and to give incentives to the agencies to engage more frequently in peer learning activities.

The proposed activities will provide incentives in the form of small lump sum grants to national and regional innovation agencies for engaging in peer learning on all topics relevant for design and delivery of innovation support

The support to joint learning activities shall be available at any time when need and opportunity for policy learning in agencies arises.

While peer learning is open for all relevant topics only the'Twinning+'methodology as well as the quality management scheme for innovation agencies based on EFQM are recognised as learning methods.

The number of innovation agencies engaged in peer learning activities significantly increases. The results of the peer learning are taken up by national and regional innovation support programmes,

and developed by peer learning activities of national and regional innovation agencies. Pilot agencies design

and customer satisfaction and accelerates the learning process. Type of action: Coordination and support actions, lump sums for participating agencies (EUR 15.000/50. 000) The conditions related to this topic are provided at the end of this call and in the General Annexes INNOSUP 6 2015:

In order to support peer-to-peer learning and overcome their regional anchoring, the coaches should have the opportunity to exchange ideas

The platform will facilitate peer-to-peer learning among the coaching community and will ensure the international dimension for coaching,

Workshops, training, peer-learning and other actions to improve the capabilities for design-driven innovation among business development organisations, incubators and other intermediaries.

and trends in Europe as well as enhance learning across the EU, Associated Countries and between the relevant stakeholders (National authorities and support services).


INNOVATION AND SMEs ISTAMBUL 2004.pdf

or classroom use should be obtained through the Centre français d'exploitation du droit de copie (CFC), 20, rue des Grands-Augustins, 75006 Paris, France,

This dialogue and monitoring have become known as the OECD Bologna process. The second OECD Conference for Ministers Responsible for SMES

The wide variation in stages of economic development, institutional arrangements and political context across the economies participating in the Bologna process, now more than 80,

Integrate entrepreneurship at all levels of the formal education system and ensure access to information, skills and expertise relating to entrepreneurship via lifelong learning programmes for the adult population.

Promote the diffusion of training programmes by stimulating the private market's supply of such services and providing hands-on focused courses.

In addition, further examination of best practices and countries'experiences is suggested in such areas as the role of universities and knowledge-intensive services in cluster Figure 3. Types of innovative networks 1

and university (GU) ES ESES USUS US CO ES USUS CM US USUS CM US ES CO CO CM ES USUS

Strengthen the teaching of intellectual property rights at universities and training institutions for entrepreneurs engineers, scientists, designers and business managers.

Governments have a major role to play in providing basic ICT familiarity during compulsory schooling, but teaching ICT skills needs to be integrated into the curriculum.

Governments also have an important role, in conjunction with education institutions, business and individuals, in providing the framework to encourage ICT skill formation at higher levels, in vocational training and in ongoing lifelong learning.

PROMOTING ENTREPRENEURSHIP AND INNOVATIVE SMES IN A GLOBAL ECONOMY OECD 2004 31 Key policy recommendations Move beyond policies for basic connectivity

and e-business skill formation (including marketing, organisational, security, trust and management skills in addition to ICT skills) in conjunction with education institutions, business and individuals.


INNOVATION AND SMEs ITALY.pdf

and D. A. Levinthal (1989), Innovation and Learning: The Two Faces of R&d, The Economic Journal, Vol. 99 (397), pp. 569-596.

The Econometric Evidence, Chicago University Press. Hall, B. H, . and J. Mairesse (2006), Empirical Studies of Innovation in The Knowledge-Driven Economy, Economics of Innovation and New Technology.

and F. Johansen (1996), Accumulation of R&d Capital and Dynamic Firm Performance: A Not-so-fixed Effect Model, Discussion Papers 184, Research Department of Statistics Norway.


INNOVATION AND SMEs PRODUCTS AND SERVICES.pdf

SB1341-03-Z-0015/65332 September 20, 2006 Prepared by Smeal College of Business The Pennsylvania State university Principal investigators Dr. Gerald Susman Dr. Anthony Warren

Dr. Min Ding Research Assistant Jenna P. Stites Graduate Assistants Vidur Chandra Jarret Chirafisi Jason R. Dytche Varij Saurabh 2 TABLE OF CONTENTS

56 4 1. 0 EXECUTIVE SUMMARY The National Institute of Standards and Technology (NIST) contracted with the Smeal College of Business at The Pennsylvania State university to conduct a review of literature that concerns how small

Most SMES don't focus on learning, but even if they do, they vary in how much they codify their learning

so that it can be used for developing similar products (Mosey, 2005). Many SMES don't recognize the value of data,

The dynamic capabilities of particular concern are those that accelerate internal learning (e g.,, degree of codification and learning routines) and networking capability (e g.

highly trained personnel who know what to look for and where. The choice of NPD projects feeds on itself to strengthen current dynamic capabilities

while service-centered learning is underway so that employees are free to engage in service exploration. Once the change process takes off

and unite them for a common purpose (Susman and Dean, 1992). Once employees are motivated and united to achieve service-centered goals,

) Employees should understand that learning from failures is often a key to success (Susman et al.

and inhibits feedback and learning opportunities from the field. It is better to overstaff inhouse personnel than risk ineffective response (Gebauer et al.

Explicit-to-tacit is typified with a learning environment particularly where students are required to experiment with published information

Harvard Business school Press. Discusses alternative approaches to supplier-OEM design relationships. Congram, C. and M. Epelman (1995."

The case of UAP), for UAP and The french Ministery of Research-University of Lille. Discusses service innovation in the insurance industry.

Mapping the field of innovation, The Pennsylvania State university-Smeal College of Business. Discusses the evolution of innovation research.

'Cognitive and motivational factors affecting the transfer of expertise, Stanford university Graduate school of Business. Describes the complexities of tacit and explicit knowledge. 65 Huang, X.,G. N. Soutar, A. Brown (2002."

Harvard Business school Press. Discusses eight steps for successful organizational change. Kupper, C. 2001. Service innovation-A review of the state of the art, The University of Munich, Institute for Innovation Research and Technology Management:

1-46. Discusses the history and current state of service innovation in industry and literature.

Also discusses systematizing learning across projects. 67 Nonaka, I. and H. Takeuchi (1995. The Knowledge-Creating Company:

Customer oriented industrial services, Helsinki University of Technology, BIT Research Centre. Discusses the creation of industrial service innovations that add value to the customer.

London Business school, University of North carolina and University of southern california Research Monograph. Discusses progress towards global service leadership in the US service industry.

Harvard Business school Press Discusses the attributes and strategies of hidden champions (worldwide market leading SMES.

Discusses organizational learning and the organization of innovation from the perspective of Danish service firms. Susman, G. I. and J. W. Dean Jr (1992.

Development of a model for predicting design for manufacturability effectiveness. In G. I. Susman (Ed.)Integrating Design and Manufacturing for Competitive Advantage.

Innovation and Change Management in Small and Medium-Sized Manufacturing Companies, The Pennsylvania State university-Smeal College of Business.

The organization of new service development in the USA and UK, SPRU Science and Technology Policy Research-University of Sussex:

University of Groningen Research Institute SOM. Discusses possible innovation advantages of small and large firms.

Review of Innovation Practices in Small Manufacturing Companies, The Pennsylvania State university-Smeal College of Business-for NIST.


INNOVATION AND SMEs STRATEGIES AND POLICIES.pdf

and institutional learning. However because of the heterogeneity of the SME population, any policy to increase their innovative capacities must be targeted to meet the needs of a variety of user groups

recruitment of university graduates and skilled personnel; awareness of new ideas and technologies; and incentives and institutional frameworks for improving collaborations within networks and clusters, including local technical centres or technical colleges.*

*This background paper was provided based on material by David Audretsch (Indiana University), Bart Clarysse and Vincent Duchêne (Kwanticonsult) and Vlerick Leuven (Gent Management School at the University of Gent

), with contribution from Gian Maria Gros Pietro, Andrea Bonaccorsi, Anna Buzzonetti, and Mario Cerchia..WK1 4 Introduction 1. The contribution of small firms to innovation-led growth and job creation1 has been renewed of interest in recent years.

-They employ some higher educated people (with a university degree or the equivalent. -They have introduced at least one new product on average.

ago AFFILIATION Include more spin-offs from universities and research labs R&d ACTIVITIES Invest significantly in research (75%invest more than 20%of Invest on average about 11%of their turnover in R&d Invest less than 5%of their turnover in R&d 8 Biotechnology, electronics and telecommunication, industrial software applications, new

or research institutions, such as universities. Economic knowledge spills-over from other firms conducting the R&d or from university research laboratories.

But why should knowledge spill over from the source of origin? At least two major spillover channels are identified in the literature

or university where the knowledge was created initially. In this spillover channel the knowledge production function is reversed actually.

In this latter case geographic proximity is clearly related to the role played by the scientists who transfer new economic knowledge from universities to firms. 60.

On the other hand, certain other sources of new economic knowledge, such as university research tend to elevate the propensity for innovative activity to cluster during the introduction stage of the life cycle

university or company) to carry out R&d on their behalf. The CRAFT scheme has a budget of approximately ECU 57 million.

-They need help recruiting university graduates and other skilled personnel. -They need to be made aware of new ideas and technologies.

-They need better incentives for collaboration with local technical centres or technical colleges 95. Because of their very different needs, the public R&d granting institutions are positioned not well to provide these services.

and learning before they succeed. Also there are no recipes for success that will be valid for all countries and regions. 101.

Autio, E.,1997, University-links and technology based SMES in the Helsinki Region, in Keeble, D. and Lawson, C. eds.‘

University research Links and Spin-offs in the evolution of regional clusters of high-tech SMES in Europe',1997.

Strategic Differences between SMES, working paper University of Gent, under review at Small Business Economics.

Cohen, W. and Levinthal, D.,1989, Innovation and Learning: The Two Faces of R&d, Economic Journal, 99 (3), 569-596.

University research Links and Spin-offs in the evolution of regional clusters of high-tech SMES in Europe',1997.


INNOVATION AND SMEs SWEDEN.pdf

Linköping University Department of Management and Engineering SE-581 83 Linköping, Sweden Tel:++46 13 281000 3 Abstract Small and medium-sized enterprises (SMES) play a vital role in the economic development of nations.

Thomas Hedner, my dear friend and colleague at Innovation and Entrepreneurship, Sahlgrenska Academy, University of Gothenburg, has been very instrumental in both introducing

University of Gothenburg, for their continuous encouragement and support. Special thanks go to Lena Nyström, Boo Edgar, Bernt Evert, Karl Maack, Björn Wahlstrand,

My deep thanks also go to my friends and colleagues at the Center of Innovation and Entrepreneurship, Linköping University:

I sincerely wish to thank, also, Joakim Wincent from Luleå University of Technology, for his deep insight into and criticism of my work,

I wish also to sincerely thank my co-author, Michael Busler of Richard Stockton College, New jersey

My thanks also go to Svante Leijon from the University of Gothenburg for encouraging me to keep my spirits high

and Kingsley Haynes, from George Mason University; Hamid Etemad, from Mcgill University; and Allam Ahmed, from the University of Sussex, for their dear friendship and scholarly spirit.

My friends and colleagues at the Institute of Innovation and Entrepreneurship at University of Gothenburg have also been very supportive.

Many thanks and gratitude goes to Ulf Petrusson, Annika Rickne, Maureen Mckelvey, and Magnus Eriksson, for their kind support.

Furthermore, I wish to thank my colleagues and friends Mats Lundqvist, Karen Williams, and Sverker Alänge, at Chalmers School of Entrepreneurship.

Fikri Abu-Zidan, from UAE University, who never stopped believing in my academic ambition. Special thanks and a genuine love go to my father,

This thesis started a long time ago, back in the early 1990s, after I finished a study at Chalmers University of Technology in Gothenburg.

was submitted a document to Washington International University (WIU), USA in 2001. The document was the first stage in proposing an SME firm performance model that deals with the deficiencies of the current ones.

Based on that work, the university awarded me, in accordance with its standards, a Phd degree.

manifested as an increase in firm size and higher capital-accumulations. Stockholders, on the other hand, advocate for lowering the capital accumulation of the firm.

Actually, the ownership structure of SMES is different from that of larger corporations. SMES are owned often by a small number of partners

The Learning Model theory of performance prediction models Hard Quantitative In the learning model theory, firms are assumed to possess a cost parameter.

In the learning model theory of Jovanovic (1982), firms are assumed to possess a cost parameter reflecting performance.

and learning regions (Morgan 1997). Laven (2008) identified the three concepts of innovation systems, clusters,

and facilitates the accumulation of specific human capital (Ballot and Taymaz 1997). Such mechanisms lead to competence-building,

The school originates from the thinking of Elton Mayo (1945) of Harvard Business school, who based his works on analyzed data collected by Roethlisberger and Dickson (1939).

The organizing models pay greater attention to the cognitive processes involving trial and error, chance, superstitious learning, and retrospective sense making (Weick 1979). 47 The socio-technical system approach to organization argues that individuals,

One implication of the passive learning models utilized by Jovanovic (1982) and Ericson and Pakes (1987) is that such models state that the firms will have a more rapid departure rate

including discussion on stochastic theories, learning model theories, and hazard modeling theories. In the second part of the paper,

and learning models are examples of models that relate to external factors, while Z-Scores, ZETA Scores,

The learning model has a relatively intermediate level of coverage intensity indicating a dual focus. 71 Paper 3:

which was published in a conference at the University of Durham in 2002 (Abouzeedan and Busler 2002).

and was published in 2003 at the ISBA 26th National Small Firms Policy and Research Conference at the University of Surrey, Surrey, U k. Abouzeedan and Busler 2003).

I joined the Innovation and Entrepreneurship unit at Sahlgrenska Academy, University of Gothenburg, Sweden. Before that paper,

I performed most of my research as an external academic, in association with academicians from universities in Sweden and the USA.

Professor Thomas Hedner, noted 79 that researchers needed to relate innovation to the degree of the openness of the innovation system itself.

the major contribution was performed by me with the support of Professor Michael Busler from The Richard Stockton College of New jersey, USA.

which I co-authored with Professor Thomas Hedner from Sahlgrenska Academy, University of Gothenburg, Sweden.

Paper 7, on the other hand, was developed with the support of Professor Magnus Klofsten from Linköping University, Sweden,

and also Professor Thomas Hedner. 82 Contribution of paper 7 to the purpose of the thesis The SIV model has the advantage of balancing both quantitative and qualitative input parameters.

The quantitative variables in the model include R&d and other outward technology costs, as well as inward technology costs such as management and administrative innovations.

That relationship is less extensive in the case of the learning models. Other models are concerned more with the internal experiences of single firms,

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