Innovation Networks of High Tech SMES: Creation of Knowledge but no Creation of Value

Rob Winters and Erik Stam
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Rob Winters: Netherlands Ministry of the Interior and Kingdom Relations

No 2007-042, Jena Economics Research Papers from Friedrich-Schiller-University Jena

Abstract: This paper analyses the effects of innovation networks on product and process innovation and sales growth of high technology SMEs. Innovation net- works are positively related to both product and process innovation, i.e. knowledge creation. One exception is the negative effect of innovation networks with suppliers on product innovation. Older SMEs are more product innovative than young SMEs. The positive relation between firm size and (process) innovation, disappears when networks are introduced into the analyses. The general conclusion is that vertical innovation networks remove the effect of firm size on process innovation. In other words, high-tech SMEs can ‘borrow’ size if they co-operate with customers, but especially with suppliers for process innovation. So smallness is not necessarily a disadvantage for innovation, as long as firms cooperate with other organisations. Innovation and networks do not seem to effect value creation, measured as sales growth.

Keywords: innovation; innovation networks; high tech SMEs; firm growth (search for similar items in EconPapers)
JEL-codes: D21 D83 D85 L25 O31 O32 (search for similar items in EconPapers)
Date: 2007-07-31
New Economics Papers: this item is included in nep-cse, nep-ent, nep-ino, nep-knm, nep-mic, nep-net and nep-tid
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Citations: View citations in EconPapers (5)

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Persistent link: https://EconPapers.repec.org/RePEc:jrp:jrpwrp:2007-042

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