Innovation Success of Non-R&D-Performers: Substituting Technology by Management in SMEs

40 Pages Posted: 10 Dec 2008

See all articles by Christian Rammer

Christian Rammer

ZEW – Leibniz Centre for European Economic Research - Industrial Economics and International Management Research

Dirk Czarnitzki

Catholic University of Leuven (KUL); Centre for European Economic Research (ZEW)

Alfred Spielkamp

University of Applied Sciences Gelsenkirchen

Date Written: 2008

Abstract

This paper investigates the impact of in-house R&D and innovation management practices on innovation success in small and medium-sized firms (SMEs). While there is little doubt about the significance of technology competence for generating successful innovations, inhouse R&D activities may be a particular challenge for SMEs due to high risk exposure, high fixed costs, high minimum investment and severe financial constraints. SMEs may thus opt for refraining from R&D and relying more on innovation management tools in order to achieve innovation success. We analyse whether such a strategy can pay off. Based on data from the German CIS we find that R&D activities are a main driver for innovation success if combined with external R&D, using external innovation sources or by entering into cooperation agreements. SMEs without in-house R&D can yield a similar innovation success if they effectively apply human resource management tools or team work to facilitate innovation processes.

Keywords: Innovation Success, R&D, Innovation Management, SMEs

JEL Classification: L25, O31, O32, O38, O47

Suggested Citation

Rammer, Christian and Czarnitzki, Dirk and Czarnitzki, Dirk and Spielkamp, Alfred, Innovation Success of Non-R&D-Performers: Substituting Technology by Management in SMEs (2008). ZEW - Centre for European Economic Research Discussion Paper No. 08-092, Available at SSRN: https://ssrn.com/abstract=1314246 or http://dx.doi.org/10.2139/ssrn.1314246

Christian Rammer (Contact Author)

ZEW – Leibniz Centre for European Economic Research - Industrial Economics and International Management Research ( email )

P.O. Box 10 34 43
L 7,1 D-68161 Mannheim
Germany

Dirk Czarnitzki

Centre for European Economic Research (ZEW) ( email )

P.O. Box 10 34 43
Mannheim, 68034
Germany

Catholic University of Leuven (KUL) ( email )

Faculty of Economics and Business
Naamsestraat 69
Leuven, 3000
Belgium
+32 16 326906 (Phone)
+32 16 325799 (Fax)

HOME PAGE: http://www.econ.kuleuven.be/msi/faculty_members.htm

Alfred Spielkamp

University of Applied Sciences Gelsenkirchen ( email )

Neidenburgerstrasse 43
D-45877 Gelsenkirchen
Germany
02 09 / 95 96 - 634 (Phone)
02 09 / 95 96 - 684 (Fax)

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