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OUTSOURCING OF R&D AND INNOVATION ACTIVITIES IN SMEs: EVIDENCE FROM SLOVENIA

Author

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  • Barbara Bradac Hojnik

    (University of Maribor, Faculty of Economics and Business)

  • Miroslav Rebernik

    (University of Maribor, Faculty of Economics and Business)

Abstract

This paper examines the outsourcing of research and development and of innovation activities in small and medium-sized companies (SMEs). As the results of these activities enable companies to achieve and sustain competitive advantage, it is crucial to manage them properly. As SMEs generally lack internal resources to perform R&D and innovation activities internally, is the outsourcing of these activities a viable solution for them? This paper examines the basic characteristics of outsourcing R&D and innovation activities in SMEs, based on a survey among Slovenian companies in the manufacturing and service industries. We tested five hypotheses. Empirical results show that one third of SMEs outsource R&D and innovation activities in different forms, and that small companies outsource these activities more often. The biggest share of SMEs partially outsources R&D and innovation activities, followed by SMEs that outsource all those activities, and by SMEs that perform R&D and innovate in co-operation with other firms. When comparing the type of R&D and innovation activities that are outsourced, the results show that SMEs mainly outsource experimental development, followed by basic research and applied research. However, they mostly outsource R&D and innovation activities to universities and independent research organisations and only occasionally to private organisations from industry and individual researchers.

Suggested Citation

  • Barbara Bradac Hojnik & Miroslav Rebernik, 2012. "OUTSOURCING OF R&D AND INNOVATION ACTIVITIES IN SMEs: EVIDENCE FROM SLOVENIA," Economic Review: Journal of Economics and Business, University of Tuzla, Faculty of Economics, vol. 10(2), pages 3-11.
  • Handle: RePEc:tuz:journl:v:10:y:2012:i:2:p:3-11
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    References listed on IDEAS

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    1. Arie Y Lewin & Silvia Massini & Carine Peeters, 2009. "Why are companies offshoring innovation? The emerging global race for talent," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 40(8), pages 1406-1406, October.
    2. Christoph Grimpe & Ulrich Kaiser, 2010. "Balancing Internal and External Knowledge Acquisition: The Gains and Pains from R&D Outsourcing," Journal of Management Studies, Wiley Blackwell, vol. 47(8), pages 1483-1509, December.
    3. Arie Lewin & Silvia Massini & Carine Peeters, 2008. "Why are companies offshoring innovation ?the emerging global race for talent," Working Papers CEB 08-009, ULB -- Universite Libre de Bruxelles.
    4. Arie Lewin & Silvia Massini & Carine Peeters, 2009. "Why are companies offshoring innovation the emerging global race for talent (Journal of International Business Studies (2009) 40 (901-925) DOI:10.1057/jibs.2008.92)," ULB Institutional Repository 2013/205625, ULB -- Universite Libre de Bruxelles.
    5. repec:bla:jomstd:v:47:y:2010:i:s2:p:1483-1509 is not listed on IDEAS
    6. Bruno Cassiman & Reinhilde Veugelers, 2006. "In Search of Complementarity in Innovation Strategy: Internal R& D and External Knowledge Acquisition," Management Science, INFORMS, vol. 52(1), pages 68-82, January.
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    Cited by:

    1. Krzysztof Zborowski, 2013. "Logistics Outsourcing In Management Strategy In Sme – Survey Results," Advanced Logistic systems, University of Miskolc, Department of Material Handling and Logistics, vol. 7(1), pages 117-124, December.
    2. K. Sachpazidu-Wojcicka, 2021. "Small Firm’s Cooperation for Innovation with other Firms and Research Units - Whether the Partner Matters for Product, Process, Marketing and Organizational Innovations?," European Research Studies Journal, European Research Studies Journal, vol. 0(Special 1), pages 69-75.

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    More about this item

    Keywords

    outsourcing; research and development; SMEs;
    All these keywords.

    JEL classification:

    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • O39 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Other

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