Professor Ph d. Nicolescu Ovidiu Management Faculty Academy of Economic Studies Bucharest, Romania inst. manager@gmail. com
Professor Ph d. Popa Ion Management Faculty Academy of Economic Studies Bucharest, Romania popaion 2000@yahoo. com
Professor Ph d. Dobrin Cosmin Management Faculty Academy of Economic Studies Bucharest, Romania cdobrin@yahoo. com
Abstract†Romania, a New Member state of European Union, has undertaken a complex process to adapt to new
conditions and requirements of European market especially the growing competition of foreign products and services once the commercial barriers had fallen
Romanian SMES are the one of the most affected area. In order to create a general perspective on small and medium
Professor Ph d. Nicolescu Ciprian Management Faculty Academy of Economic Studies Bucharest, Romania cnicolescu@yahoo. com
Assistant Ph d. S. Ceptureanu Sebastian Management Faculty Academy of Economic Studies Bucharest, Romania ceptureanu@yahoo. com
Assistant Ph d. S. Ceptureanu Eduard Management Faculty Academy of Economic Studies Bucharest, Romania eduard ceptureanu@yahoo. com
that innovative efforts within SMES were especially focused on new products (34.87%),new technologies 26.99%),new managerial and marketing approaches
resources training increase together with the enterprises†size 2009 International Association of Computer science and Information technology-Spring Conference
Lecturer Department of Entrepreneurship and Business Management Linet Hove Student of Entrepreneurship Arnold Thondhlana Lecturer Accounting Sciences and Finance Department
Nicholas Kakava Coordinator in Consumer Sciences Chinhoyi University of Technology, Zimbabwe Corresponding author: Rangarirai Mbizi
Abstract When the SME competitive advantage is based on the knowledge as is the case in the knowledge
economy, innovation and creativity becomes a decisive factor in the economic activity because knowledge tends to be developed in the actual contexts.
their lack of training in the field of operations limits the entire business (Shepard et al, 2000. A
Low levels of education and training, as well as poor business skills are contributing factors to the lack of capacity and poor business efficiencies
Skills development and education in general form part of human capital and according to human capital theorists these assets can improve SME productivity significantly (Honig, 2001
would lead to better innovative capabilities in terms of higher order learning, and consequently can improve organizational performance including environmental management
helpful to adopt innovations because of their competent learning and innovative capabilities They said the quality of human resources was an essential factor influencing technical
ï Various kinds of technological effort which induce further accumulation of techno -logical capabilities, such as formal and informal Rand D, formal and informal (on-the
-job) training, acquisition of technological licences, among others ijcrb. webs. com INTERDISCIPLINARY JOURNAL OF CONTEMPORARY RESEARCH IN BUSINESS
empowerment and engagement, trust, training, job rotation, and the extent and range of individual networks. At project level it included a diverse mix of project team members
contribution, on the job training was the most (93%)capability required in order to execute innovation processes. This attribute was in line with the research findings conducted by Baker
engagement, trust, training, job rotation, and the extent and range of individual networks Educational background of the founder was ranked 63
results also suggest that on the job training is required equally for innovation to succeed in SMES Results reflected that innovation processes were being followed.
Activities, University of Technology Malaysia, Malaysia Essentials, 1999. Entrepreneurship development, 2: 1 http://www. essentials-on
Leading the Revolution, Harvard Business school Press, Boston Henderson, R. M. & Clark, K. B. 1990.
innovation and collective learning in small businesses†Education and Training 42 (4): 228-37 Morris, L. 2011.
Innovation management-creating value with innovation management. http //www. innovationmanagement. se/..//Innovation-Master-Plan chapter...-5. Accessed 18
University, Cranfield Rogers, E. 1983. The Awakening Giant: Continuity and Change in ICI, Oxford, Basil
Saunders, M.,Lewis, P. þhill, A. 2009), Research methods for business students 5 th ed.,Pearson, England
include technical training and awareness raising initiatives, such as the Sustainable Urban Mobility campaign, that give an award to European cities
campaigns, organisation of sustainable homework and home-school transport services, and mobility measures for large events.
Investigations indicate that such measures do not require large financial INNOVATION IN URBAN MOBILITY-POLICY MAKING
Department of Innovation Studies, University of Utrecht, P o box 80125, NL 3508 TC Utrecht, The netherlands Received 26 february 2001;
Computers that do not really help to raise the quality of education DDT, a substance that fails to free the world of famine,
information technology in education, of biotechnology for health care and our food, and the significance of new materials for clothing and consumer products and the high level of
accepting his professorship in †Cultural Industry†at the Erasmus University, Rotterdam Paul Rutten stressed this analysis in his †The Future of the Imagination Machine.
and universities as well, being asked to account for themselves more specifically. Justification is expected often in terms of contributing towards
back to those university groups operating at the absolute forefront of science. Many other university researchers will see an increase in the number of requests to set out
what they are able to do for the economy and the society of the future As a follow-up to the above, there is the demand for management of the knowledge
The increasing trend for universities being expected to account for themselves is only one manifestation of an expansive phenomenon that is emerging in the international
This gives rise to a dilemma for universities and public research organisations 42 Universities, because the demand for more specific orientation towards the problem in
question calls for a multidisciplinary approach, while at the same time they are under a great deal of (scientific) pressure to score in the mono disciplines.
Academic quality control Quality measured on a wider set of criteria Accountability to science Accountability to society as well
and through learning by doing and learning by using among policy-makers, innovation managers in businesses and other parties
and innovation (and learning) processes. This is a major deficiency for our understanding of the development of innovation systems or innovation networks, given that it is precisely
In turn, while scholars in the field of public administration and policy studies admit that there is a new †strategy and management paradigmâ€,
1 C. Shapiro, H. Varian, Information Rules, Harvard Business school Press, Boston, 1999 2 T. Hughes, The evolution of large technological systems, in:
-sessment), Dissertation, University of Twente, 1994 36 J. W. Schot, Constructive technology assessment and technology dynamics:
Free University, Kerckebosch, Zeist, 1991 38 J. Grin, H. van de Graaf, R. Hoppe, Technology Assessment Through Interaction, Rathenau Instituut, W57
at the opening of the academic year, Utrecht University, 1999 52 K. Kelly, New Rules for the New Economy, Viking Books US/Forth Estate, UK, 1998
Long-term Foresight Studies in Policy Exercises), address Tilburg University, Samson H. D. Tjeenk Willink, 1993
Debating technologies, Dissertation, Tilburg University, Tilburg Univ. Press, 1997 58 J. Dijck, Ondernemen tussen vermarkting en vermaatschappelijking (Running a Business Between Com
-mercialisation and Communalisation), Farewell speech, Tilburg University, 2000 59 W. van Rossum, Innovatie en de ontwikkeling van bedrijven (Innovation and the Evolution of Businesses
University, Tilburg Univ. Press, 1994 61 B. Martin, Foresight in science and technology, Technol. Anal.
University, Heerlen, 1995 (course book 64 Netherlands Ministry of Economic Affairs, Industrie-en dienstenbeleid (Industrial and Services Policy
65 F. Bongers, Participatory policy analysis and group support systems, Dissertation, Tilburg University, yet to be published, 2000
Ruud Smits is †Professor of Technology and Innovation, more particularly the Strategy and Management of
Innovation Processes†of the Department of Innovation Studies of the University of Utrecht. His major research
Learning process; Industrial co-operation; Internal technological capabilities 1. Introduction Stereotypes usually associate innovation with the
which involve universities, public R&d laboratories and firms. The aim of this policy is to enhance the
districts, universities and research institutions in -volvements are stronger. 1 In spite of these initiatives, one must not forget
acquires its specific character through a learning process. In this perspective, we should place em -phasis on the production activity
These collaborative relationships entail learning Lundvall, 1993 •As one of the †four contemporary paradigms in the
which governance structures best promote learning etc. †(Foss, 1996, p. 12 2. 2. Co-operation as a learning process
Knowledge for production purpose cannot be con -sidered as free. The role of the firm is not to allocate
over time through a learning process and become tacit and specific to the firm (Foss, 1996.
†Know-how has a strong learning-by-doing character, and it may be essential that human capital in an effective team configu
•The second reason relates to learning. Collaborative relationships might take a hierarchical form. How
This interactive learning has following three dimen -sions (Lundvall, 1993 â Technical learning exists when interaction be
-tween users and producers induces an under -standing of reciprocal needs â Communicative learning involves the establish
-ment of technical codes, tacit and specific to the partners â Social learning limits opportunism by creating
similar behavioural codes The access to external linkages is assumed to be crucial for SMES competitiveness
-tutions (university, engineering school, technical col -lege), research institutions (CNRS, INRA, INSERM and CEA. Individual inventors and designers are the
Coefficient (t of Student model 1 Coefficient (t of Student model 2 Coefficient (t of Student
model 3 Constant â'0. 3033 (â'0. 685) 0. 3701 (0. 877) 0. 3554 (1. 496
Categories of firms Very small enterprises 1†9 employees â'0. 9152â (â'1. 938) â'1. 2468â â (â'2. 536) â'1. 1226â â (â'2. 936
school/university †0. 213 (0. 587) †National research centre †â'1. 9709â â (â'3. 096) â'1. 8226â â (â'2. 997
and external learning Firms do not delegate their research activities to other industrial corporations. To keep initiative and
transfer while diversity of knowledge elicit †learning and problem solving that yields innovation†(Cohen and Levinthal, 1990, p. 133
the learning capacity and contribute to the success of cooperative projects. Following three factors which
Coefficient (t of Student model 1 Coefficient (t of Student model 2 Coefficient (t of Student
model 3 Constant 0. 0791 (â'0. 389) 0. 1321 (0. 347) â'0. 469+(â'1. 7997
Research intensity â'0. 0208 (â'0. 176 Size (number of employees) â'0. 00018 (0. 861
level of education are confronted to a complex problem they recognise if the firm can rely on its own competencies to resolve this problem.
of education relies more on their own knowledge •In firms, innovative competencies do not depend exclusively on executive staff.
of education Firms who are endowed with this office have already structured their innovative capabilities. They rely less
were discussed also at the seminars at the Universities of Orlã ans (LEO) and Strasbourg (BETA.
Innovation and learning: the two faces of R&d. The Economic Journal 99 (9), 569†596
new perspective on learning innovation. Administrative Science Quaterly 35 (3), 128†152 Demsetz, H.,1991.
University Press, New york, pp. 159†178 Dosi, G.,1988. Sources, procedures, and microeconomic effects of innovation.
Co-operation as a learning process SMES and external communication The crucial role of the manager during the innovation process
Relation between absorptive capacity and external learning Links between R&d intensity and successful innovation The contribution of executives to successful collaborative relationships
1depaul University 2, 3washburn University, 1700 SW College avenue, Topeka KS 66621 USA 1harold. welsch@depaul. edu;
2david. price@washburn. edu; 3michael. stoica@washburn. edu Abstract-The paper investigates the relationship between SME innovation, growth intentions and performance of small firms, by
The importance of innovative marketing practices has been recognized by several scholars (Gerald Hills et al Creativity is a key to innovative capacity,
•Learning from the Leaders •Key Recommendations Barriers to Innovation for SME€ s ï Lack of willingness to invest in upskilling and human
Higher education institutions (User friendly ï Reduce the Local authority cost burden from SME The Global Innovation Scoreboard (GIS
and the academic community will not just happen but it needs to be facilitated and encouraged Policy Paper Recommendations
as they deem fit †not just in HEIS •Commercial vehicle to drive Innovation
therefore, for scholars in this area is what new forms of integration may be needed to ensure that the various parts of the
education systems and the regional ability to attract and retain high educated people. A less favorable context reduces the potential of firms and people to
communication and training. Both are easier when the knowledge gap within the sector is small
As a result, global buyers instead of universities are gatekeepers of knowledge This enhances the likely impact of global value chains on the level of innovation
and education system reduce the ability to innovate. The question is therefore to what extent the local innovation system has matured
Generally these firms are smaller, the education level of entrepreneurs is lower and entrepreneurs are less risk taking.
whereas entrepreneur characteristics entail education level, age IHS Working Paper 27.2013. Innovation in SMES. The case of home accessories in Yogyakarta, Indonesia 7
-economic stability, the education system and the business environment. As these are likely to be incomplete in emerging economies, they impact on innovation (Lundvall 2007
handicrafts), 2 staff of a financial institute and 2 university staff were interviewed. The information was counterchecked with information from active members of associations and
as basic education improved sharply, domestic markets grew by about 7%annually and absorptive capacities3 Phase 2:
Out of Asia as †the university of craftâ€. Firms that entered more specialized market niches noted
a university teacher: I joint Out of Asia in 1998. There were not many trading companies at the
Universities 1, 9 1, 4 1, 9 1, 6 Finance Institutes 2, 1 2, 2 2, 7 2, 2
International acquisition requires capabilities such as speaking foreign languages and concrete activities such as travelling and observing. It is measured as the sum of travel and
He conducted a Masters in Business Administration in Australia, worked in Australia, worked for Out of Asia in Yogyakarta,
university graduates are trained not in market-oriented industrial design. 2) Number of departments. Having marketing,
(3) Staff training. 4) Active involvement of staff in innovation processes. The impact of the indicators on innovation and their association is given in annex 3, table 3 and 4. The
The education level of managers was included not in the computed variable, as it proved to be an insignificant and
They build the capacity of their staff through training and bonuses. As resp.##14 notes
S=Staff Training dummy D=number of departments dummy; DS=discuss with staff dummy; CD=capacity of
only education (dummies) and the previous position (dummies) are significant indicators. As expected, higher educated have more absorptive capacity then lower educated.
but this is caused by a higher education level and a more relevant previous position Table 11:
Î'1 University dummy 1. 953 Î'1 Role in value chain (nominal) 0. 554
Î'2 Diploma dummy 2, 175 Î'2 Staff number 0. 006 Î'3 Secondary school completed dummy 0, 822
Î'4 Other position 0, 972 Insignificant entrepreneur level variables: age, willingness to take risks, gender,
the entrance of new firms and incremental learning of existing firms. Firms established by high
It is because of education. They are not going to industrial look, but keep in Indonesian style. That you did not see 5 years ago. â€
•Training: 63%of all firms send their entrepreneur and/or staff to training, often
provided by the government in association with university staff and associations. In addition, many entrepreneurs train their own staff,
as they are better aware of specific trends and technologies than training providers. Training takes place on a wide range of
topics, indicating that the sector moves forward in a balanced manner (see table 12 •Human resource development:
•Learning-by-doing is an important intrinsic process. All firms make mistakes when they
Other (computer training, etc) 12 12 IHS Working Paper 27.2013. Innovation in SMES. The case of home accessories in Yogyakarta, Indonesia 24
at what price provides a very strong learning signal. Even stronger is the signal when a buyer
%Universities 6, 5%0, 0%9, 1%3, 0 %Business ssociations 10,0%0, 0%0, 0%3, 1
newsletters) and in a tacit form (training, trade fairs, associations and extension services. For all modes of knowledge geographical and cognitive proximity matters,
and field of training, subsidies etc). Research and access to technology is offered by the Bureau of Business and Technology and the Association of
techniques, offers training and entrepreneurship development. The association houses an impressive amount of machines and prototype production processes developed by themselves
delivering training (resp.##3, 10,11), bureaucratic (resp.##13) and inefficient (resp.##16). ) Second IHS Working Paper 27.2013.
The main knowledge institutes are universities, especially the institute of arts (ISI. Universities are debit to the quickly growing absorptive capacity of firms, as many staff
graduated from one of the 70 universities. They are seen as too theoretical to directly benefit the
sector, but all universities increasingly pay attention to entrepreneurship and community services. At ISI, students can choose between more artistic and more commercial art studies.
But their role in innovation interactions is limited to teaching. There is no joint design development or
innovation platform IHS Working Paper 27.2013. Innovation in SMES. The case of home accessories in Yogyakarta, Indonesia 32
for instance by organizing training events subsiding associations and subsiding environmental-friendly investments. They also play an
He is the master. Many of my designs (for other clients) are inspired by him. I have many
he needs money for children†s education, he can easily borrow it. Many of the other suppliers cheat
I have a master in cartography at Gadja Mada University from 1980 and was graded the best student of my year.
I wanted a government job, as everyone else, but was rejected twice because I lacked recommendation letters
first university graduate starting a business, at least ten years before a host of other university
graduates joined him. What changed The first change is that the ease of doing business improved.
Cultural industry, tourism and education are Yogyakarta†s dominant industries, contributing 36 %of GDP (constant value) in the province in 2002.
Province towards the prime center of education, culture and tourism in 2020†Since decentralization laws in 1999, revised in 2004,
This provides the 270,000 students in Yogyakarta with an IHS Working Paper 27.2013. Innovation in SMES.
education level and previous position The regression model is as follows I=B0+B1*X1+â‘B2*X2
whose entrepreneurs have a university degree (table 15). Firms with a medium level of absorptive capacity have a much lower innovation level than those with a high
education level of the entrepreneur. For this group of firms, differences in innovation are primarily
University education (dummy) 15%63%68 %Global Value Chain characteristics Exporters(%)0%46%79 %Relational value chain(%of firms) 72%64%81
when newcomers with high education levels and experiences in other sectors start new, medium-sized businesses.
travelling, a departmental structure, staff training, internal discussion and capacity of designers. Especially the ability to balance product, process
A new perspective on learning and inno. Administrative Science Quarterly 35 (1): 128 Cooke, P. 2001.
A novel approach to national technological accumulation and absorptive capacity Aggregating cohen and levinthal. The European Journal of Development Research 20 (1): 56
HIS Erasmus University Rotterdam: Rotterdam Gereffi, G. 1999. International trade and industrial upgrading in the apparel commodity chain.
University Library Groningen Ismalina, P. 2011. An integrated analysis of socioeconomic structures and actors in indonesian industrial clusters:
University Library Groningen Ivarsson, I, . and C. G. Alvstam. 2010. Upgrading in global value chains:
A case of technology learning among IKEA-suppliers in china and southeast asia. Journal of Economic geography Advance Access, joeg. oxfordjournals. org
"Student working group, 2010 Lall S. 2001. Competitivenss, technology and skills. Northampton: Edward Elgar Lalls..2003.
Learning and innovation: What's different in the (sub) tropics and how do we explain it?
Knowledge, learning and small firm growth: A systematic review of the evidence Research Policy, 36 (2), pp. 172-192
United nations University-Maastricht Economic and social Research and training centre on Innovation and Technology, 2008-044
A Framework to Study Learning and Innovation in Developing Countries. Oxford development studies, 36 (1), pp. 39-58
for Industry and SME studies, Faculty of economics, University of Trisakti, 4 Tambunan, T. 2006. Transfer of technology to and technology diffusion among non-farm small and medium enterprises in
Center for Industry and SME Studies, faculty of economics, University of Trisakti, 3 Tambunan, T. 2005. Promoting small and medium entreprises with a clustering approach:
Lecturer, ISI (university of arts), Yogyakarta Ahmad, Director, Siji, Yogyakarta Ahmed Assegaf, Director, Tropical Handicrafts, Yogyakarta
Joko Prihantoko, head subdivision of training of production techniques, Department of Trade and Industry Yogyakarta City council
Nurul Indarti, Deputy Director Academics and Research, faculty of economics and Business, University of Gadja Mada Pandit Pintoro, Director, Narti†s Silver, Yogyakarta
Poppy Ismalina, Director, Faculty of economics and Business, University of Gadja Mada Priyo Salim, Director, Salim Silver, Yogyakarta
Tosan Tri Putro, lecturer, product design department, faculty of architecture and design, Duta Wacana Christian University, Yogyakarta
Triningsi, wife and business partner, Doni Silver, Yogyakarta Tumijo, silver artisan, Katogede, Yogyakarta Umer Setiadji, Marketing Department, Center for Handicraft and Batik, Ministry of Industry, Yogyakarta
*Universities, 319**,272**,301**,351**1, 279**-043,141 Finance Institutes, 267**,326**,298**,308**,279**1, 166,025
Biber-Klemm, Susette University of Basel Burkert, Frank Bayer AG Leverkusen Chavunduka, Gordon Zimbabwe National Traditional Healers Association
Correa, Carlos University of Buenos aires Cottier, Thomas University of Berne Cueni, Thomas La Roche Daele, Wolfgang van den Science Center Berlin
DÃ bert, Rainer Science Center Berlin Dutfield, Graham Oxford university Eeckhaute, Jean Charles van EU Commission
Renã van Berkel, Curtin University of Technology (WASIG Liesel Gutierrez, BCSD Gulf of mexico Palgunadi Setyawan, DML Indonesia
e) A surge in patenting among universities and public-sector R&d institutions since the enactment of the Bayh-Dole Act in the US and
university-industry collaboration and the commercialization of publicly funded research results All these issues point to a more active utilization of
institutes and universities to industry as well as changes to the IP system in favour of the right holders
learning curve, use of complementary sales and service capabilities, technical complexity, ongoing innovation, relationships based on trust and use of
Basic training in this area would enable entrepreneurs, researchers and engineers in SMES to benefit from the public
with universities, chambers of commerce and industry, science parks or other new types of institutional structures for improving access of
the national innovation system, such as universities R&d centres, IP offices, incubators, chambers of commerce and industry, SME associations, inventors
business training centres and multinationals have established a network of support for SMES in IP
Promoting interaction between universities, public R&d centres and SMES in the field of innovation and
government and university programmes. It is generally felt that a closer interaction between universities and industry would enable enterprises
and society as a whole) to benefit from the innovative capacity of universities. In that context transparent and clear rules on ownership of
intellectual property and equitable sharing of income generated by commercialization of IP rights has often
universities become involved in patenting their R&d results. While analysis of the most appropriate mechanisms for fostering public-private partnerships
of university research results, often by means of J INTELLEC PROP RIGHTS, JANUARY 2005 42
â'Nottingham University Business school, UK University Commercialisation Survey for Financial Year 2002, http://www. auril. org. uk/webpages
/UKTT NUBS FY2002 FR. pdf â'OECD, Compendium of Patent Statistics (2003 â'OECD, Science, Technology and Industry
7 For more information on patenting at universities and public sector R&d institutions, see OECD, Turning science into
•development of demand-driven, easy-to-use and affordable services for all users, learning from the success of portable navigation systems and Web 2. 0 social networks
medium/large firms were most likely to collaborate with Higher education Institutes HEIS) in Ireland ï§Foreign owned firms were more likely than Irish firms to collaborate with research
partners, with 44 per cent and 32 per cent respectively engaged. Foreign owned firms were most likely to collaborate with other firms outside Ireland,
HEIS in Ireland ï§The most likely collaboration partner for all firms was HEIS in Ireland, rather than HEIS
outside of Ireland or collaborations with other firms either within or outside Ireland FORFÃ S BERD 2011/2012 ANALYSIS
education institutes, private nonprofit institutes and other sources 87%92%89 %6 %4%6 %8%3%5
%Diploma Bachelors Masters Phd Very likely Likely Not likely No 22 Firms were asked at what level of qualification they were likely to recruit more researchers
The results in figure 24 show that ï§69 per cent of firms were very likely or likely to recruit to researchers at Bachelor†s
or likely to recruit at Diploma level (down from 38 per cent in 2009 FORFÃ S BERD 2011/2012 ANALYSIS
Businesses mostly partnered with higher education institutes in Ireland 57 %36 %42 %35%35 %0 %10
education or other institutes in Ireland Higher education or other institutes outside Ireland Engaged in any
collaboration Small Medium/large firms FORFÃ S BERD 2011/2012 ANALYSIS 33 with 17 per cent of small firms collaborating with HEIS and almost a quarter of medium/large
firms Figure 44: Percentage of firms engaged in collaborative research by ownership, 2011 Source: CSO databank
was with HEIS in Ireland. Foreign firms were more likely to collaborate with firms outside of
education or other institutes in Ireland Higher education or other institutes outside Ireland Engaged in any
collaboration Irish-owned Foreign-owned 13 %16 %19 %6 %33 %11 %20%20 %9 %36
education or other institutes in Ireland Higher education or other institutes outside Ireland Engaged in any
collaboration Manufacturing Services 34 Forfã¡s Board members Eoin O†Driscoll (Chairman Chairman, Southwestern Martin Shanahan
Trends in Education and Training Outputs 2013 EGFSN July 2013 Annual Business Survey of Economic Impact 2011
Monitoring Ireland†s Skills Supply †Trends in Education and Training Outputs 2012 EGFSN July 2012
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