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The Propensity of SMEs to Innovate: A Cross – Country Outlook

Author

Listed:
  • Irene Fafaliou

    (University of Piraeus, Department of Economics)

  • Marinos Stefanitsis

    (National Bank of Greece , Business Processes Department)

  • Aelita Skarzauskiene

    (Mykolas Romeris University, Faculty of Social Informatics)

Abstract

Although small and medium-sized enterprises’ (SMEs) involvement in the innovation process is a long standing issue and recently has resurged in the relevant literature, building and sustaining innovation is a hard and non linear work. The purpose of the paper is to explore the propensity of SMEs to innovate drawing evidence from three different countries and a wide variety of sectors and firms’ ages and sizes. In particular, this paper focuses on differences between various characteristics of the surveyed SMEs and attempts to establish links with firms’ tendency to innovate. Data were collected through a questionnaire survey addressed to a sample of 336 firms located in Greece, Croatia, and Lithuania. Findings suggest a somewhat problematic relationship between Greek and Croatian firms and their involvement to innovation. Lithuanian firms, however, seem to be more committed to innovation since they employ a more dynamic approach to innovation process and its implementation.

Suggested Citation

  • Irene Fafaliou & Marinos Stefanitsis & Aelita Skarzauskiene, 2014. "The Propensity of SMEs to Innovate: A Cross – Country Outlook," SPOUDAI Journal of Economics and Business, SPOUDAI Journal of Economics and Business, University of Piraeus, vol. 64(3), pages 94-115, July-Sept.
    • Handle: RePEc:spd:journl:v:64:y:2014:i:1:p:94-115
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    References listed on IDEAS

    as
    1. Bronwyn Hall & Francesca Lotti & Jacques Mairesse, 2009. "Innovation and productivity in SMEs: empirical evidence for Italy," Small Business Economics, Springer, vol. 33(1), pages 13-33, June.
    2. Zoltan J. Acs & David B. Audretsch, 2008. "Innovation in Large and Small Firms: An Empirical Analysis," Chapters, in: Entrepreneurship, Growth and Public Policy, chapter 1, pages 3-15, Edward Elgar Publishing.
    3. Tiwari, Rajnish & Buse, Stephan, 2007. "Barriers to innovation in SMEs: Can the internationalization of R&D mitigate their effects?," Working Papers 50, Hamburg University of Technology (TUHH), Institute for Technology and Innovation Management.
    4. Heike Belitz & Anna Lejpras, 2014. "Financing Patterns of Innovative SMEs and the Perception of Innovation Barriers in Germany," Discussion Papers of DIW Berlin 1353, DIW Berlin, German Institute for Economic Research.
    5. Audretsch, David B. & Keilbach, Max C. & Lehmann, Erik E., 2006. "Entrepreneurship and Economic Growth," OUP Catalogue, Oxford University Press, number 9780195183511.
    6. Max Keilbach & Jagannadha Pawan Tamvada & David B. Audretsch (ed.), 2009. "Sustaining Entrepreneurship and Economic Growth," International Studies in Entrepreneurship, Springer, number 978-0-387-78695-7, December.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    innovation; small and medium-sized enterprises; Greece; Croatia; Lithuania;
    All these keywords.

    JEL classification:

    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • L20 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - General
    • O57 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Comparative Studies of Countries

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