R&D Network and value Creation in SMEs

Nader Ale Ebrahim, Shamsuddin Ahmed and Zahari Taha

MPRA Paper from University Library of Munich, Germany

Abstract: Research and development functions are fundamental drivers of value creation in technology-based Small and Medium enterprises (SMEs) seemingly successful R&D is a function of innovation processes and R&D networks. There is a perceived lack of understanding regarding the importance of SMEs and their need to continuously enhance their technological capabilities for the purpose of establishing themselves a dominant market position. In this paper R&D network issues from the perspective of their impact on value creation in SMEs have been studied. One very important trend to enable new knowledge creation and transfer in and to SME's is the development of collaborative environments and networks to increase their innovation capabilities as a single unit but also the capabilities of the network as a whole through collective learning. SMEs seem to be appropriate units to behave like network nodes because of their lean structure, adaptability to market evolution, active involvement of versatile human resources, ability to establish sub-contracting relations and good technological level of their products. SMEs not only shape the larger outcome, but also constrain actions of the state and MNCs in demand-responsive, buyer-driven networks. The objective of this paper is the notice to creation of a network of SMEs that are perhaps geographically dispersed but virtually linked so that the participating members focus on their specialized tasks yet also share their knowledge and experience resources to create an agile structured and flexible enterprise.

Keywords: R&D; Network; value Creation; SMEs (search for similar items in EconPapers)
JEL-codes: L1 M11 M12 M54 O1 O3 O32 P23 P42 (search for similar items in EconPapers)
Date: 2008-02, Revised 2008-04
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Published in In: Seventh conference of Industries and Mines R&D Centers- R&D and Network Value Creation, Tehran, Iran. (2008): pp. 1-6

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