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Large and small firms’ role in the knowledge-based industries innovation process

Author

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  • Rodríguez, José Carlos

    (Instituto de Investigaciones Económicas y Empresariales de la Universidad Michoacana de San Nicolás de Hidalgo)

Abstract

This paper is an introduction to the discussion of the role played by knowledgebased large and small firms in the innovation process. It takes into account the theoretical background within the Schumpeterian-Penrosian tradition. The paper reviews a model where firm size has important implications for specific stages of the innovation process. An important conclusion in this work is that small firms are highly responsive when reacting to technological change. However, financial restrictions constitute an important impediment for innovation development in small firms. From this perspective, cooperation and alliances between large and small firms is an adequate response to the problems arising when knowledge-based firms innovate. The paper also presents some empirical results obtained from a survey on biotechnology-related industries conducted in Canada in 1999 as an empirical demonstration of this theoretical approach.

Suggested Citation

  • Rodríguez, José Carlos, 2007. "Large and small firms’ role in the knowledge-based industries innovation process," Revista Nicolaita de Estudios Económicos, Universidad Michoacana de San Nicolás de Hidalgo, Instituto de Investigaciones Económicas y Empresariales, vol. 0(1), pages 131-143.
  • Handle: RePEc:ris:rnicee:0031
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    Keywords

    Schumpeter-Penrose; innovation; technological change; firm size; biotechnology.;
    All these keywords.

    JEL classification:

    • B30 - Schools of Economic Thought and Methodology - - History of Economic Thought: Individuals - - - General
    • L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • O39 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Other

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