From innovation to commercialization through networks and agglomerations: analysis of sources of innovation, innovation capabilities and performance of Dutch SMEs

Abstract

This study claims that policy makers may not be sufficiently aware of the importance of maintaining an appropriate balance between exploration and exploitation networks for small and medium-sized enterprises (SMEs). On the basis of the open innovation model, policy makers are also increasingly stimulating SMEs to develop their exploration skills. In the Netherlands, a government subsidy called the 'innovation voucher programme' was introduced to stimulate SMEs to develop innovation in cooperation with knowledge institutes. Yet, although many studies show that SMEs tend to have a higher R&D productivity than larger firms, and innovative SMEs are more likely to make external networks with other SMEs or institutions such as universities, there is still little examination of the successfulness of SME's innovation activities. The growing policy attention for the role of SMEs in innovation prompts the questions how innovation in SMEs can be facilitated, and which factors contribute to the success (or failure) of their innovation efforts. This study explores the innovation strategy of innovative Dutch SMEs by means of their sources of innovation, innovation capabilities, innovation performance, and commercialization sources. By means of structural equation modelling of a sample of 243 Dutch SMEs, this study shows that exploring (technology) opportunity together with institutions such as universities and private research establishments is important for successful innovation in SMEs. But, in addition, our model shows that contacts with competitors are also important for successful innovation performance. Our finding that openness of open innovation also applies to the commercialization phase is too often neglected by researchers and policy makers. JEL Classification

STI–DUI learning modes, firm–university collaboration and innovation

“…There seems to be no consensus on the drivers of innovation, neither on the impact of innovation on firm performance (Evangelista and Vezzani, 2010;Hemert et al, 2012). We have investigated the relationships among different components of the "innovation black box", namely the STI and DUI learning modes, research based collaborative agreements, and innovation output.…”

A review of literature on open innovation in small and medium-sized enterprises

“…Csath (2012) argues that embracing open innovation is essential for SMEs to grow internationally and they need an educational system which encourages and appreciates creativity, criticism, self-discipline, selfmotivation, desire for knowledge and life-long learning, openness, and cooperation. Hemert et al (2013) claimed that policy makers may not be aware of the importance of various networks for SMEs. Innovation support schemes from the public actors are useful to sensitize SMEs towards open innovation practices (Kamp and Bevis 2012).…”

From ideas to construction innovations: firms and universities collaborating

“…There are several funding mechanisms: direct R&D grants, innovation vouchers and financial support of pre-competitive research programmes. Innovative SMEs engage in both exploration and exploitation, which is particularly important for government policies to acknowledge when the commercialization phase is in focus (van Hemert, Nijkamp and Masurel, 2013). Among commercialization sources, they warn in their study of recipients of Dutch innovation vouchers against overlooking the role of advisors to SME firms.…”