and the involvement of non-R&d workers in innovation initiatives Venturing is deï ned here as starting up new organiza
employees, including those who are employed not at the ovation 29 (2009) 423†437 internal R&d department.
that informal ties of employees with employees of other ARTICLE IN PRESS chn organizations are crucial to understand how new products
by individual employees is a means to foster organizational success (e g. Van de ven, 1986. Work has become more
employees can be involved in innovation processes in multiple ways, for example by taking up their suggestions exempting them to take initiatives beyond organizational
-nities to recruit specialized workers, and small innovation portfolios so that risks associated with innovation cannot
deï ned as 10†99 employees) and medium-sized ones 100†499 employees. Past work has shown that there is a
great deal of difference in the innovation strategies of small and large ï rms (e g. Vossen, 1998;
marked by recruiting specialized workers, and introducing managerial layers, rules and procedures (Greiner, 1972 Once a critical size is reached,
workers, abundant venture capital, widely distributed knowledge and reduced product life cycles, most enter -prises can no longer afford to innovate on their own.
deï ned as enterprises with no more than 500 employees and was implemented by means of computer-assisted
10†99 employees and 100†499 employees. Enterprises with less than 10 employees (micro-enterprises) were excluded
since they generally have limited no or identiï able innova -tion activities, and this population usually contains many
Employee involvement Leveraging the knowledge and initiatives of employees who are involved not in R&d, for example by taking up
suggestions, exempting them to implement ideas, or creating autonomous teams to realize innovations Technology exploration
99 employees 100†499 employees Total 21 22 32 53 128 288 17 24 60
networking and employee involvement are fairly common innovation practices. Outward and inward licensing of IP
Employee involvement, customer involvement and external networking appear to be main types of open innovation conducted by both manufacturers and services
Employee involvement 93 42 57 1 Technology exploration Customer involvement 97 38 61 1 dus
Employee involvement 94 93 0. 7 Technology exploration Customer involvement 98 97 0. 8 External networking 95 94 0. 6
employees) are more likely to engage in open innovation On all technology exploitation and exploration practices
mind that employee involvement, customer involvement Table 5 Incidence of and perceived trends in open innovation practices between siz
10†99 employees n  376 %100†499 employees n  229 %Ma Z (U
Technology exploitation Venturing 27 32 1. 4 Outward IP licensing 6 16 4. 3 Employee
involvement 92 96 1. 7 Technology exploration Customer involvement 97 98 1. 1 External networking
respondents with 100†499 employees are (much) larger Especially for the technology exploration activities med
Whitney 10†99 employees n  376 100†499 employees n  229 Mann†Whitney
Z (U 0. 11 0. 14 1. 2 0. 01 0. 04 1. 5 0. 37 0. 48 2. 8
the practices of employee involvement, external involve -ment and external networking. The second component contains R&d outsourcing and outward and inward IP
rely on the involvement of employees and customers, and external networking, features which are shared with cluster 1
Employee involvement 98 99 Technology exploration Customer involvement 98 99 External networking 99 100 External participation 44 31
Employee involvement 0. 53 0. 43 Technology exploration Customer involvement 0. 52 0. 38 External networking 0. 29 0. 27
including employee invol -vement and external networking. Medium-sized enterprises are represented clearly over and their innovation activities
qualities, and initiatives of employees †30 Policy Organization principles, management conviction that involvement of employees
is desirable †15 Motivation Involvement of employees in the innovation process increases their motivation and commitment
†22 Other 19 11 Total 100 100 ion Technology exploration e ent %Customer involvement
Employee involvement is the only item where motives are different than for the other items.
However, employee involvement is also the outcome of an †internal organizational policy†or it is
employees. These two motives are dictated not necessarily by innovation objectives Table 9 identiï es the main managerial and organiza
-ing, employees who leave the organization. These inter -organizational relationships frequently lead to problems concerning the division of tasks and responsibility, the
Competences Employees lack knowledge/competences, not enough labor ï exibility †Commitment Lack of employee commitment, resistance to
change †Idea management Employees have too many ideas, no management support †Other 7
Total 100 100 ployee olvement 88 %Customer involvement n  68 %External networking n  53
When relying on employees to imple -ment open innovation, it often turns out that they do not
to take up any of the ideas provided by employees or that the number of ideas coming from individual employees just
gets too large to handle in an efï cient way. This, in turn poses new challenges to managers when they want to get
non-R&d) workers. For technology exploration, by far most SMES somehow try to involve their customers in
with employee involvement and external networking, and ending with more †advanced†practices like IP licensing
particularly applies to employee involvement, customer involvement and external networking. These innovation practices were introduced to respondents in such a way that
micro-enterprises (with less than ten employees) were excluded. As these enterprises have been repeatedly identiï ed as sources of breakthrough innovations
with 10†499 employees. This is partly due to the screening questions, but also because it was decided that manu
customer involvement, following with employee involve -ment and external networking, and ending with more advanced practices which require formal budgets and
Employee involvement 0. 72 0. 13 0. 01 Customer involvement 0. 59 ï¿0. 08 0. 10
employee creativity into practicable ideas. R&d Management 32 387†395 Von Hippel, E.,2005. Democratizing Innovation.
that large firms(>250 employees) are collaborating on average with more external partners than small firms.
innovation experts. Some cases where not useful to illustrate open innovation in SMES. Other companies were acquired just
should have less than 500 employees. The companies are active in a wide range of industries.
and have 500 employees; other companies are just a few years old and have less than five employees.
The reader should thus not be surprised by the heterogeneity 13 of the cases. The diversity of the themes we will discuss illustrates how open innovation can take
learning process led by sleep experts. The QOD case illustrates that developing a successful business model that ultimately changes the industry starts with nothing more than the conviction of a well
less than 20 employees) that is active in the bicycle accessory market. It is a third-generation, family
and material experts. The third step is promotion. In this step, Curana organized information sessions to promote its new ideas among potential customers.
collaboration with external production partners, mold makers, and material experts Using the so-called Original Strategic Management (OSM) model, Curana and its innovation partners
After consulting with an examination board of sleep experts, QOD decided to produce a functional quilt that would reduce the temperature variation under the quilt to
specialized workers, and small innovation port folios such that risks associated with innovation cannot be spread.
It combined valuable insights from sleep experts with the PCM technology, which has required the characteristics to improve sleep.
and tested with the help of medical experts. QOD€ s first functional quilt†branded as Temprakon†was the result of linking PCM technology with insights about sleep comfort
Jaga also explored initiatives to spur the creativity of employees and external partners by setting up
of Saflot Creative Consultants) added: â€oeour antennas are open to society and technologies, and we record a lot.
employees, for instance, did not understand why management was preoccupied with managing the network of partners while internal management problems also had to be solved.
firm in the case inventors are companies doing contract research, external designers, or employees Several firms we interviewed chose not to co-patent an invention that was developed co with their
SMES is hampered by lack of financial resources, scant opportunities to recruit specialized workers poor understanding of advanced technology, and so on.
Universities, research labs, crowds of experts, lead users, and knowledge brokers are just a few examples of potential external sources of kn owledge.
packaged with an inspiring recipe booklet, written by a culinary expert, which contains 30 easy-to
consultants develop. In contrast, they are spurred to take action when they are confronted with the testimonials of entrepreneurs who are using open innovation successfully to develop new businesses
SMES are companies with less than 250 employees (N=792; lager companies (â ¥ 250 employees;
N=175 The calculation covers the period 2002-2004 Open innovation can be measured in different ways.
labs, private R&d organizations, and consultants (iv; institutional sources (universities and university colleges (v), government and public research organizations (vi)),
reflects external R&d per employee Collaborative innovation indicates whether innovating firms engage in collaborative innovation activities with
consultants and private R&d organizations iv); ) universities (v; and public research organizations (vi. Collaborative innovation is captured by calculating
collaboration per employee Variable Small and medium-sized enterprises N-SME=792 Large firms N-large=175
Moreover, small contests can be held among employees, suppliers, and local communities of designers, engineers, and so on
the High-level Expert Group on The Future of Community Re -search Policy (Luc Soete, coordinator)( 2009.
-glomerates in countries with rigid labour markets tend to keep obsolete technologies alive for longer periods
IBM hired Von neumann as a consultant in January 1952 and started a collaboration with his organiza
14,000 employees in France, ten fac -tories, and a global turnover of 201 million French francs, which had multiplied by 10
-tion, labour market regulation is called into play, as flexible labour markets in the USA facilitate the re
-deployment of the workforce and then the adoption of innovation much more than in Europe We suggest a complementary interpretation, but
workers and/or by lowering real wages. There is historical evidence from the literature discussed in
placing more flexibility in the labour market Notes 1. The EU Report includes STMICROELECTRONICS as incorporated in
We would like to thank the experts who reviewed the exposã and interim draft of this Policy Brief:
and with ten or more employees at the beginning of the observation period. â€oega -zelles†are born newly high-growth enterprises not
One group of experts argues that govern -ments should do both, while others favour a policy
than 10 employees) as%of all enterprisesâ€, see p. 37 3 These countries are also home to many high-growth innovative SMES but the conditions under
growth in employees (or in turnover) greater than 20%a year, over a three-year period,
employees at the beginning of the observation period. †4 A size threshold of ten employees is suggested to
five years but nevertheless have more than 250 employees. Animal metaphors have some popularity in lit
includes for example new companies that grow from ten to 18 employees within three years †reaching a
than 250 employees. Nota bene, the obvious consequence of high growth of SMES is that they soon turn into
ï Interviews with individual experts ï Expert survey Secondary data analysis ï OECD and Eurostat databases
Three expert interviews were conducted for this Policy Brief: One with OECD economist Jonathan Potter one with US venture capital and innovation policy advisor Burton Lee,
Two experts were charged with guiding the research for this Policy Brief, constituting an advisory board ï Allan Martel, President of Allan Martel Consulting based in Ottawa, Canada
These experts had agreed to review drafts of this policy brief and contributed to the workshop where the re
Allan Martel Consulting also contributed a case study (see section 5. 3) and an expert statements paper (statements are used throughout the Policy Brief
-tion, rewards for innovative employees, possible income limits, and regulations of sideline income including equity shares in new companies) of entrepreneurial researchers.
-neurial activities of employees in large companies, and recognition of business relationships of uni -versity researchers in peer groups
employees 0 1 2 3 4 5 6 7 8 9 10 Manufacturing*(2006) Services**(2006
***Employer enterprises with fewer than 250 employees Source: OECD (2009), p. 29 The picture is similar for â€oegazellesâ€.
-nants and strategies of young companies, based on 70 executive cases from 22 different countries and sur
many experts took a similar view, high -lighting that Europe is largely lacking such opportunity-looking entrepreneurial spirit
As regards impeding market regulation, highly regulated labour markets may be an important barrier for companies to grow. 33 As innovation policy advisor Burton Lee states:
employees in Europe that entrepreneurs and company managers are extremely cautious about hiring. †34
-kets, while Austria, a country with a fairly loose labour market regulation, has only an average share of high
These 691 companies made up 4. 9%of new companies with more than 10 employees in
â€oeonly start-ups with greater than twenty employees have persistent employment effects over time and only in
The Group of Independent Experts concluded that â€oeeurostars should not only be sustained but pref -erably its budget should be increased in the future.
-tomers and industry experts as well as support to find the necessary resources, above all funding and em
team, made up of twelve employees, selects 10-15 companies to be supported. The team applies eight se
senior management consultant Rebecca Scheel †the applying companies need to be at the right develop
business consultants. These companies then do a pitch to Accelerace†s investment committee which makes
The investment committee is made up of several investors, industry experts as well as Symbion†s CEO. The initial pitch to enter the programme resembles a typical investor pitch, while the final
pitch includes validated information for customers and industry experts, an actionable operational plan, and a
-formance, such as employees, revenue growth and number of customers. A mid-term evaluation is expected to be ready in autumn 2011.
-trepreneurs and executives.(.The Accelerators are not consultants--they are co-entrepreneurs who in -vest in the companies they work with to guarantee common goals and passionate development effort. †72 The
Accelerators and other programme participants use their networks to funding sources, potential customers and partners to accelerate the growth of the target companies.
the Executive Training Programme to link talented under -graduates from Singapore universities with growth-oriented SMES;
employees and financing abroad as well as to cooperation in R&d, production and innovation activities with international partners
In a study for the European Commission†s Sectoral E-business Watch in 2009,42 experts responded to a
of stakeholders and experts with sectoral background and reputation. Second, its suitability for addressing advanced goals.
or failure. †144 The experts consulted for this Policy Brief took dif -ferent views.
example, the GDP or the employment level of a country grows if such policies are applied. This means that if
In Korea the SME sector, accounting for 99%of enterprises and 88%of employees, is consid
with 300 to 1, 000 employees is to be introduced for policy purposes. Korea†s SME policies
account for 99%of all enterprises and 88%of all employers. The traditional Korean policy perception of
-facturing, is an enterprise with less than 300 employees and with sales less than 8 billion won (approximately
-ment supports SMES with up to 300 employees with numerous measures, enterprises with more than 300 employees are regarded as large firms under strict government regulation
and cannot receive any support As a result, many enterprises do not grow Although the â€oeweakness concept†is still dominant,
ï improved support to spin-offs by executives and employees of large enterprises ï enabling start-ups at home and expanding the infrastructure for one-person creative enterprises
employees, responding to global competition and developing initiatives to foster â€oehidden global champions†The introduction of policy schemes for supporting this group of enterprises will probably impact the Korean
or the number of employees in order to sustain the status of an SME and be applicable for government support
and 45 Executive Development Scholarships were awarded ï The Business Advisors Programme was created to attach experienced professionals, managers, ex
ï The Executive Training Programme helps SMES groom the next generation of potential business leaders by linking talented undergraduates from Singapore†s universities, with growth-oriented
Jayaraman, joined the Asia-Pacific Executive Master of business administration Programme at the National University of Singapore through SPRING€ s Advanced Management Programme
and a critical mass of qualified technical and managerial manpower. As Rowen et al. 2006) note about the
minimum of 20 employees or to 10 million Canadian dollars (CAD) in sales or both There is currently a critical shortage of capital for technology based firms.
switched to high tech SMES with up to 500 employees (mostly under 25 employees. In Canada, in Cooper†s
more patents per employee than did larger firms In 2006 the US General Accounting Office (GAO) reported that from 1983 to 2004, participating federal
The SBIR is focused on SMES †namely over 41%of respondents had 15 or fewer employees â€, while about
15%had more than 100, for a mean of only ten employees. As expected very small firms had lower in
-creased sales and employment †with the best results for firms in the range of 15 to 25 employees.
ï Fostering employment of high-tech employees in SMES: the SME Agency introduced for the first
have less than 300 employees or capital below JPY 300 million. The majority of schemes target
of 20%or more in each of the previous three years and a size of more than nine employees at the beginning
these 59 companies had more than ten employees and thus fulfilled the OECD criteria for high-growth enter
excluding micro companies with fewer than ten employees and large companies with more than 250 em
of mouth recommendation, employees, controlling, successful innovation marketing, extended distribution opportunities after being acquired by a trust (mentioned twice), withdrawal of competitors, severe winters. 167
Good coaching by external consultants Unproblematic access to growth finance Successful new marketing methods Successful introduction of new products or services
10-250 employees, i e. meeting the OECD€ s definition criteria for high-growth SMES. For high-growth SMES
Specific items include e g. management change, lack of skilled workers, too low distribution of risk, lack of experience with export markets
Good coaching by external consultants Unproblematic access to growth finance Successful new marketing methods Successful introduction of new products or services
However, existing evaluations and expert statements collected for this Policy Brief suggest that such policies should take a broader approach, not ex
d) good coaching by external consultants e) unproblematic access to growth finance f) successful new marketing methods
During an intensive five-month process you will be in contact with customers and industry experts
by internationally proven entrepreneurs and executives. These Accelerators help the best and the brightest start
The Accelerators are not consultants--they are co -entrepreneurs who invest in the companies they work with.
We would like to thank the experts who reviewed the exposã and interim draft of this Policy Brief:
and with ten or more employees at the beginning of the observation period. â€oega -zelles†are born newly high-growth enterprises not
One group of experts argues that govern -ments should do both, while others favour a policy
than 10 employees) as%of all enterprisesâ€, see p. 37 3 These countries are also home to many high-growth innovative SMES but the conditions under
growth in employees (or in turnover) greater than 20%a year, over a three-year period,
employees at the beginning of the observation period. †4 A size threshold of ten employees is suggested to
five years but nevertheless have more than 250 employees. Animal metaphors have some popularity in lit
includes for example new companies that grow from ten to 18 employees within three years †reaching a
than 250 employees. Nota bene, the obvious consequence of high growth of SMES is that they soon turn into
ï Interviews with individual experts ï Expert survey Secondary data analysis ï OECD and Eurostat databases
Three expert interviews were conducted for this Policy Brief: One with OECD economist Jonathan Potter one with US venture capital and innovation policy advisor Burton Lee,
Two experts were charged with guiding the research for this Policy Brief, constituting an advisory board ï Allan Martel, President of Allan Martel Consulting based in Ottawa, Canada
These experts had agreed to review drafts of this policy brief and contributed to the workshop where the re
Allan Martel Consulting also contributed a case study (see section 5. 3) and an expert statements paper (statements are used throughout the Policy Brief
-tion, rewards for innovative employees, possible income limits, and regulations of sideline income including equity shares in new companies) of entrepreneurial researchers.
-neurial activities of employees in large companies, and recognition of business relationships of uni -versity researchers in peer groups
employees 0 1 2 3 4 5 6 7 8 9 10 Manufacturing*(2006) Services**(2006
***Employer enterprises with fewer than 250 employees Source: OECD (2009), p. 29 The picture is similar for â€oegazellesâ€.
-nants and strategies of young companies, based on 70 executive cases from 22 different countries and sur
many experts took a similar view, high -lighting that Europe is largely lacking such opportunity-looking entrepreneurial spirit
As regards impeding market regulation, highly regulated labour markets may be an important barrier for companies to grow. 33 As innovation policy advisor Burton Lee states:
employees in Europe that entrepreneurs and company managers are extremely cautious about hiring. †34
-kets, while Austria, a country with a fairly loose labour market regulation, has only an average share of high
These 691 companies made up 4. 9%of new companies with more than 10 employees in
â€oeonly start-ups with greater than twenty employees have persistent employment effects over time and only in
The Group of Independent Experts concluded that â€oeeurostars should not only be sustained but pref -erably its budget should be increased in the future.
-tomers and industry experts as well as support to find the necessary resources, above all funding and em
team, made up of twelve employees, selects 10-15 companies to be supported. The team applies eight se
senior management consultant Rebecca Scheel †the applying companies need to be at the right develop
business consultants. These companies then do a pitch to Accelerace†s investment committee which makes
The investment committee is made up of several investors, industry experts as well as Symbion†s CEO. The initial pitch to enter the programme resembles a typical investor pitch, while the final
pitch includes validated information for customers and industry experts, an actionable operational plan, and a
-formance, such as employees, revenue growth and number of customers. A mid-term evaluation is expected to be ready in autumn 2011.
-trepreneurs and executives.(.The Accelerators are not consultants--they are co-entrepreneurs who in -vest in the companies they work with to guarantee common goals and passionate development effort. †72 The
Accelerators and other programme participants use their networks to funding sources, potential customers and partners to accelerate the growth of the target companies.
the Executive Training Programme to link talented under -graduates from Singapore universities with growth-oriented SMES;
employees and financing abroad as well as to cooperation in R&d, production and innovation activities with international partners
In a study for the European Commission†s Sectoral E-business Watch in 2009,42 experts responded to a
of stakeholders and experts with sectoral background and reputation. Second, its suitability for addressing advanced goals.
or failure. †144 The experts consulted for this Policy Brief took dif -ferent views.
example, the GDP or the employment level of a country grows if such policies are applied. This means that if
In Korea the SME sector, accounting for 99%of enterprises and 88%of employees, is consid
with 300 to 1, 000 employees is to be introduced for policy purposes. Korea†s SME policies
account for 99%of all enterprises and 88%of all employers. The traditional Korean policy perception of
-facturing, is an enterprise with less than 300 employees and with sales less than 8 billion won (approximately
-ment supports SMES with up to 300 employees with numerous measures, enterprises with more than 300 employees are regarded as large firms under strict government regulation
and cannot receive any support As a result, many enterprises do not grow Although the â€oeweakness concept†is still dominant,
ï improved support to spin-offs by executives and employees of large enterprises ï enabling start-ups at home and expanding the infrastructure for one-person creative enterprises
employees, responding to global competition and developing initiatives to foster â€oehidden global champions†The introduction of policy schemes for supporting this group of enterprises will probably impact the Korean
or the number of employees in order to sustain the status of an SME and be applicable for government support
and 45 Executive Development Scholarships were awarded ï The Business Advisors Programme was created to attach experienced professionals, managers, ex
ï The Executive Training Programme helps SMES groom the next generation of potential business leaders by linking talented undergraduates from Singapore†s universities, with growth-oriented
Jayaraman, joined the Asia-Pacific Executive Master of business administration Programme at the National University of Singapore through SPRING€ s Advanced Management Programme
and a critical mass of qualified technical and managerial manpower. As Rowen et al. 2006) note about the
minimum of 20 employees or to 10 million Canadian dollars (CAD) in sales or both There is currently a critical shortage of capital for technology based firms.
switched to high tech SMES with up to 500 employees (mostly under 25 employees. In Canada, in Cooper†s
more patents per employee than did larger firms In 2006 the US General Accounting Office (GAO) reported that from 1983 to 2004, participating federal
The SBIR is focused on SMES †namely over 41%of respondents had 15 or fewer employees â€, while about
15%had more than 100, for a mean of only ten employees. As expected very small firms had lower in
-creased sales and employment †with the best results for firms in the range of 15 to 25 employees.
ï Fostering employment of high-tech employees in SMES: the SME Agency introduced for the first
have less than 300 employees or capital below JPY 300 million. The majority of schemes target
of 20%or more in each of the previous three years and a size of more than nine employees at the beginning
these 59 companies had more than ten employees and thus fulfilled the OECD criteria for high-growth enter
excluding micro companies with fewer than ten employees and large companies with more than 250 em
of mouth recommendation, employees, controlling, successful innovation marketing, extended distribution opportunities after being acquired by a trust (mentioned twice), withdrawal of competitors, severe winters. 167
Good coaching by external consultants Unproblematic access to growth finance Successful new marketing methods Successful introduction of new products or services
10-250 employees, i e. meeting the OECD€ s definition criteria for high-growth SMES. For high-growth SMES
Specific items include e g. management change, lack of skilled workers, too low distribution of risk, lack of experience with export markets
Good coaching by external consultants Unproblematic access to growth finance Successful new marketing methods Successful introduction of new products or services
However, existing evaluations and expert statements collected for this Policy Brief suggest that such policies should take a broader approach, not ex
d) good coaching by external consultants e) unproblematic access to growth finance f) successful new marketing methods
During an intensive five-month process you will be in contact with customers and industry experts
by internationally proven entrepreneurs and executives. These Accelerators help the best and the brightest start
The Accelerators are not consultants--they are co -entrepreneurs who invest in the companies they work with.
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