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Constraints, Determinants of SME Innovation, and the Role of Government Support

Author

Listed:
  • OUM Sothea

    (Economic Research Institute for ASEAN and East Asia (ERIA))

  • Narjoko Dionisius

    (Economic Research Institute for ASEAN and East Asia (ERIA))

  • Charles HARVIE

    (Centre for Small Business and Regional Research School of Economics, University of Wollongong, Australia)

Abstract

This paper provides an empirical analysis of potential constraints to SMEs upgrading their capability to innovate, and assesses the effectiveness of government support in overcoming these constraints. The justification for government support is that market failures can hinder SMEs’ access to information, finance, technology, and human resources. This paper focuses on the impact of the perceived effectiveness of government support through business development services in terms of providing: (i) training; (ii) counselling and advice; (iii) technology development and transfer; (iv) information; (v) business linkages; (vi) financing; and (vii) a conducive business environment. The effectiveness of this support is evaluated against the ability of SMEs to innovate.

Suggested Citation

  • OUM Sothea & Narjoko Dionisius & Charles HARVIE, 2014. "Constraints, Determinants of SME Innovation, and the Role of Government Support," Working Papers DP-2014-10, Economic Research Institute for ASEAN and East Asia (ERIA).
    • Handle: RePEc:era:wpaper:dp-2014-10
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    References listed on IDEAS

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    Cited by:

    1. Muñoz-Sepúlveda, Jesús A., 2017. "Restricciones de capacidad, exportación e I+D: Un análisis empírico con datos de empresas manufactureras españolas/Capacity Constraints, Exports and R&D: An Empirical Analysis with Data of Spanish Man," Estudios de Economia Aplicada, Estudios de Economia Aplicada, vol. 35, pages 133-152, Enero.
    2. Peter Njiraini & Paul Gachanja & Jacob Omolo, 2018. "Factors influencing micro and small enterprise’s decision to innovate in Kenya," Journal of Global Entrepreneurship Research, Springer;UNESCO Chair in Entrepreneurship, vol. 8(1), pages 1-9, December.

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    More about this item

    Keywords

    : SMEs; constraints; innovation; government support; and developing Asia.;
    All these keywords.

    JEL classification:

    • L20 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - General
    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance

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