Internationalization of SMEs in the Baltic Sea Region: Barriers of cross‐national collaboration considering regional innovation strategies for smart specialization

Susanne Mueller‐Using, Wieslaw Urban and Jan Wedemeier ()

Growth and Change, 2020, vol. 51, issue 4, 1471-1490

Abstract: This paper provides new evidence on barriers that hamper small and medium‐sized enterprises (SME) in the Baltic Sea Region (BSR) to establish international collaboration. Our analysis makes use of collected data concerning internationalization of SMEs in seven BSR countries. Our logistic multivariate regression model, which we applied after selecting relevant variables using the LASSO method, indicates a significant positive effect for the entities´ demand in support to acquire clients as well as the absence of foreign markets operations. A significant adverse effect is found for cooperation agreements as a support tool for internationalization as well as the interest to participate in an innovation and internationalization system. SMEs rather desire their internationalization capacity building than direct support in acquiring clients. Overall, our results support the hypothesis that strengthening cross‐national collaborations and establishing appropriate support programs are important toward innovativeness and competitiveness among SMEs in the BSR. Smart Specialization Strategies (S3) could provide a framework for building cross‐national collaborations.

Date: 2020
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