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Entrepreneurship and Innovation Strategies in ICT SMEs in Enlarged Europe (EU25)

Author

Listed:
  • Lal, Kaushalesh

    (UNU-MERIT)

  • Dunnewijk, Theo

    (UNU-MERIT, Maastricht University)

Abstract

Innovation strategies of entrepreneurs are mapped with growth and performance of their firms in this study. Findings of the study are based on the data collected from 1238 small ICT firms located in 25 member states of European Union. The survey was conducted during October 2006 and March 2007. Results of Logit analysis suggest that firms that pursued continuous innovation strategies experienced more employment growth, higher profitability, and better sales dynamics than those that adopted occasional innovation approach. Market growth of continuous innovating firms realized faster pace than other type of firms. Another distinguishing characteristic of two types of firms emerged is market preference. Target market of continuous innovating firms has been European or global markets while innovative activities of other firms targeted domestic market. The study concludes that European innovation policies should be focused towards continuous innovation activities with due attention at human resource development policies.

Suggested Citation

  • Lal, Kaushalesh & Dunnewijk, Theo, 2008. "Entrepreneurship and Innovation Strategies in ICT SMEs in Enlarged Europe (EU25)," MERIT Working Papers 2008-016, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    • Handle: RePEc:unm:unumer:2008016
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    References listed on IDEAS

    as
    1. Kaushalesh Lal, 2007. "E-business and Manufacturing Sector: A Study of Small and Medium-sized Enterprises in India," Palgrave Macmillan Books, in: Information and Communication Technologies in the Context of Globalization, chapter 2, pages 16-33, Palgrave Macmillan.
    2. Banji Oyelaran-Oyeyinka & Kaushalesh Lal, 2006. "SMEs and New Technologies," Palgrave Macmillan Books, Palgrave Macmillan, number 978-0-230-62545-7, December.
    3. Gianmario Verona & Davide Ravasi, 2003. "Unbundling dynamic capabilities: an exploratory study of continuous product innovation," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 12(3), pages 577-606, June.
    4. Cefis, Elena & Marsili, Orietta, 2006. "Survivor: The role of innovation in firms' survival," Research Policy, Elsevier, vol. 35(5), pages 626-641, June.
    5. Knight, Gary A., 2001. "Entrepreneurship and strategy in the international SME," Journal of International Management, Elsevier, vol. 7(3), pages 155-171.
    6. Banji Oyelaran-Oyeyinka & Kaushalesh Lal, 2006. "New Technologies and Economic Development," Palgrave Macmillan Books, in: SMEs and New Technologies, chapter 1, pages 1-22, Palgrave Macmillan.
    7. Arshad M. Khan & V. Manopichetwattana, 1989. "Innovative and Noninnovative Small Firms: Types and Characteristics," Management Science, INFORMS, vol. 35(5), pages 597-606, May.
    8. Barrios, Salvador & Burgelman, Jean-Claude, 2007. "Information and Communication Technologies, Market Rigidities and Growth: Implications for EU Policies," MPRA Paper 5838, University Library of Munich, Germany.
    9. Lööf, Hans & Heshmati, Almas & Asplund, Rita & Nåås, Svein-Olav, 2001. "Innovation and Performance in Manufacturing Industries: A Comparison of the Nordic Countries," SSE/EFI Working Paper Series in Economics and Finance 0457, Stockholm School of Economics.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    dynamic capabilities; continuous innovation; occasional innovation; competitiveness; human resources; internationalization;
    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
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D
    • O38 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Government Policy
    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
    • L63 - Industrial Organization - - Industry Studies: Manufacturing - - - Microelectronics; Computers; Communications Equipment
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity

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