The innovation capacity of small food firms in Italy

Purpose - The purpose of this paper is to analyze the innovation capacity of small and medium enterprises (SMEs) and micro enterprises through a theoretical framework that addresses the influence of some internal and external resources – derived from the literature review – on the development of innovation activities and on innovative firm’s results. Design/methodology/approach - Based on a structured questionnaire, the empirical survey has involved 122 SMEs and micro enterprises of the most representative agrifood supply chains in the Campania region: dairy, wine, pasta and olive oil. The data have been then elaborated through the cluster analysis technique in order to explore any meaningful patterns that may exist in terms of the innovation capacity. Findings - This study shows the existence of three clusters/innovation modes: collaborative innovators (CIs), non-collaborative innovators (NCIs), and non-innovators (NIs). Even though CIs represent 16.2 percent of the sample, this cluster shows an increased or stable revenue during 2011-2013 in comparison to the other two clusters. Research limitations/implications - This study provides a static view in comparison to the longitudinal analysis which could have provided a more dynamic view of the innovation capacity of agrifood SMEs and micro enterprises. Originality/value - This is the first quantitative study focusing on the factors related to the innovation capacity of agrifood firms in the Campania Region. The study specifically analyses the innovation capacity of SMEs and micro enterprises. Moreover, it offers a comprehensive analysis of internal and external drivers to innovation.