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Innovative Activity in SMEs and Rural Economic Development: Some Evidence from England

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  • David North
  • David Smallbone

Abstract

Recent writings on the factors influencing the competitiveness of regional and local economies have emphasized the importance of innovation in SMEs. This paper discusses the findings of a study of the innovation process in a sample of SMEs located in rural environments. Adopting a broad, evolutionary view of the innovation process, the study highlights important sectoral variations using a multidimensional index of innovation. The way in which innovation is achieved is found to be shaped by various aspects of the rural environment, but relatively few firms are constrained by their rural location. Nor does the lack of local networking opportunities appear to hold back innovation in the more active SMEs. In conclusion, the most innovative firms are shown to make an important contribution to rural economies in terms of external income generation and employment generation.

Suggested Citation

  • David North & David Smallbone, 2000. "Innovative Activity in SMEs and Rural Economic Development: Some Evidence from England," European Planning Studies, Taylor & Francis Journals, vol. 8(1), pages 87-106, February.
    • Handle: RePEc:taf:eurpls:v:8:y:2000:i:1:p:87-106
    DOI: 10.1080/096543100110947
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    Cited by:

    1. Alexandra Goudi & Dimitris Skuras & Kyriaki Tsegenidi, 2003. "Innovation and Business Performance in Rural and Peripheral Areas of Greece," ERSA conference papers ersa03p337, European Regional Science Association.
    2. Kent Eliasson & Hans Westlund, 2013. "Attributes influencing self-employment propensity in urban and rural Sweden," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 50(2), pages 479-514, April.
    3. João Ricardo Faria & Franklin G. Mixon, 2016. "Farmer-Entrepreneurs, Agricultural Innovation, and Explosive Research and Development Cycles," Administrative Sciences, MDPI, vol. 6(4), pages 1-11, September.
    4. Thomä, Jörg, 2022. "An urban-rural divide (or not?): Small firm location and the use of digital technologies," ifh Working Papers 37/2022, Volkswirtschaftliches Institut für Mittelstand und Handwerk an der Universität Göttingen (ifh).
    5. Dr. Mohamme Dulal Miath & Mohammed Ali Al Kindi, 2023. "Perception of Small and Medium Enterprises about Islamic Banks in Oman: Evidence from Survey Data," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 7(10), pages 1572-1585, October.
    6. Murat Sartas & Piet van Asten & Marc Schut & Mariette McCampbell & Moureen Awori & Perez Muchunguzi & Moses Tenywa & Sylvia Namazzi & Ana Sole Amat & Graham Thiele & Claudio Proietti & Andre Devaux & , 2019. "Factors influencing participation dynamics in research for development interventions with multi-stakeholder platforms: A metric approach to studying stakeholder participation," PLOS ONE, Public Library of Science, vol. 14(11), pages 1-20, November.
    7. Robert Huggins & Hiro Izushi & Daniel Prokop & Piers Thompson, 2014. "Regional competitiveness, economic growth and stages of development," Zbornik radova Ekonomskog fakulteta u Rijeci/Proceedings of Rijeka Faculty of Economics, University of Rijeka, Faculty of Economics and Business, vol. 32(2), pages 255-283.
    8. Hans Westlund & Kent Eliasson, 2011. "Attributes Influencing Enterprise Propensity in Urban and Rural Sweden," ERSA conference papers ersa10p1486, European Regional Science Association.
    9. Ian Merrell & Anita Füzi & Emma Russell & Gary Bosworth, 2021. "How rural coworking hubs can facilitate well-being through the satisfaction of key psychological needs," Local Economy, London South Bank University, vol. 36(7-8), pages 606-626, November.
    10. Miettinen Marika Rosanna & Littunen Hannu, 2013. "Factors Contributing to the Success of Start-Up Firms Using Two-Point or Multiple-Point Scale Models," Entrepreneurship Research Journal, De Gruyter, vol. 3(4), pages 449-481, June.
    11. Alexandru Pavel & Bogdan Moldovan & Bogdana Neamtu & Cristina Hintea, 2018. "Are Investments in Basic Infrastructure the Magic Wand to Boost the Local Economy of Rural Communities from Romania?," Sustainability, MDPI, vol. 10(10), pages 1-32, September.
    12. Copus Andrew & Dubois Alexandre & Hedström Moa, 2011. "Expanding horizons: local embeddedness and local engagement among small firms in the European countryside," European Countryside, Sciendo, vol. 3(3), pages 164-182, January.
    13. Michele Sabatino & Giuseppina Talamo, 2017. "Innovation and Competitiveness of European Regions," Research in Applied Economics, Macrothink Institute, vol. 9(3), pages 45-69, September.
    14. Ignazio Cabras, 2011. "Industrial and Provident Societies and Village Pubs: Exploring Community Cohesion in Rural Britain," Environment and Planning A, , vol. 43(10), pages 2419-2434, October.
    15. Alexandru Pavel & Bogdan Andrei Moldovan & Karima Kourtit & Peter Nijkamp, 2020. "Urban or Rural: Does It Make A Difference for Economic Resilience? A Modelling Study on Economic and Cultural Geography in Romania," Sustainability, MDPI, vol. 12(9), pages 1-39, May.
    16. Ahlin, Branka & Drnovšek, Mateja & Hisrich, Robert D., 2014. "Exploring the moderating effects of absorptive capacity on the relationship between social networks and innovation," Journal of East European Management Studies, Nomos Verlagsgesellschaft mbH & Co. KG, vol. 19(2), pages 213-235.
    17. Muhammad Haseeb & Marcin Lis & Ilham Haouas & Leonardus WW Mihardjo, 2019. "The Mediating Role of Business Strategies between Management Control Systems Package and Firms Stability: Evidence from SMEs in Malaysia," Sustainability, MDPI, vol. 11(17), pages 1-20, August.
    18. Martti Saarela & Kai Hänninen & Matti Muhos & Harri Jokela, 2018. "Growth Management Priorities of Service-Based Micro-Enterprises in a Sparsely Populated Area," International Journal of Management, Knowledge and Learning, International School for Social and Business Studies, Celje, Slovenia, vol. 7(1), pages 55-76.
    19. Miriam López & Adolfo Cazorla & Milagros del Pilar Panta, 2019. "Rural Entrepreneurship Strategies: Empirical Experience in the Northern Sub-Plateau of Spain," Sustainability, MDPI, vol. 11(5), pages 1-15, February.
    20. Lúcia Pato, 2015. "Rural entrepreneurship and Innovation: some successful women?s initiatives," ERSA conference papers ersa15p1367, European Regional Science Association.
    21. Manuela Natário & Ascensao Braga & Goncalo Poeta Fernades, 2015. "El emprendimiento en Regiones Fronterizas: Estudio de cuatro municipios de la BIN," Revista de Estudios Regionales, Universidades Públicas de Andalucía, vol. 3, pages 83-109.
    22. Benoit, Florence & Belderbos, René, 2024. "International connection, local disconnection: The (heterogeneous) role of global cities in local and global innovation networks," Journal of International Management, Elsevier, vol. 30(3).
    23. Zwolińska-Ligaj, Magdalena Anna, 2021. "Possibilities Of Implementing The Smart Development Concept In Rural Areas From A Business Perspective. The Example Of Eastern Poland," Roczniki (Annals), Polish Association of Agricultural Economists and Agribusiness - Stowarzyszenie Ekonomistow Rolnictwa e Agrobiznesu (SERiA), vol. 2021(1).
    24. J. Kirk Ring & Ana Maria Peredo & James J. Chrisman, 2010. "Business Networks and Economic Development in Rural Communities in the United States," Entrepreneurship Theory and Practice, , vol. 34(1), pages 171-195, January.
    25. Branka Ahlin & Mateja Drnovšek & Robert Hisrich, 2014. "Entrepreneurs’ creativity and firm innovation: the moderating role of entrepreneurial self-efficacy," Small Business Economics, Springer, vol. 43(1), pages 101-117, June.

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