PurposeThis paper aims to explore the factors that influence innovation and productivity in small and medium-sized enterprises (SMEs) manufacturing enterprises in Colombia, in comparison with larger firms.Design/methodology/approachThe study was based on firm-level panel data extracted from a census of Colombian manufacturing firms between 2007 and 2014. The authors used an adapted version of the Crepon-Duguet-Mairesse (CDM) sequential approach that interrelates R&D intensity, innovation outputs and productivity.FindingsThis study's findings indicate that investing in R&D has a positive impact on innovation in both SMEs and larger firms. However, the effect on productivity is significantly higher for SMEs. Evidence also suggests that the innovation performance of SMEs and larger firms is influenced by co-evolution among the firm's resources and capabilities, knowledge flows with external organizations, access to funding and knowledge appropriability conditions. However, highly qualified personnel, internal and commercial sources of funding, and market knowledge sourcing are crucial for innovation in SMEs. These conclusions are especially relevant for the design of industrial and innovation policies in developing economies, where innovation is a prerequisite for catching up and economic advancement.Originality/valueThe paper provides new empirical evidence on the determinants of innovation in SMEs, the mechanisms by which innovation capabilities and outputs affect its productive performance, and how the relationship between these dimensions varies with firm size in the context of a developing country.
scite is a Brooklyn-based organization that helps researchers better discover and understand research articles through Smart Citations–citations that display the context of the citation and describe whether the article provides supporting or contrasting evidence. scite is used by students and researchers from around the world and is funded in part by the National Science Foundation and the National Institute on Drug Abuse of the National Institutes of Health.
hi@scite.ai
10624 S. Eastern Ave., Ste. A-614
Henderson, NV 89052, USA
Copyright © 2024 scite LLC. All rights reserved.
Made with 💙 for researchers
Part of the Research Solutions Family.