R&D collaboration by SMEs: new opportunities and limitations in the face of globalisation

Abstract

Globalisation has systemically affected the way all firms undertake innovation. First, there has been a growing use of non-internal technology development, both by outsourcing and strategic alliances. Second, products are increasingly multitechnology. This has led to the growing use of networks by all firms, previously a primary competitive advantage of SMEs. These developments have created both opportunities and threats for the SME. On the one hand, large firms have increasingly sought out SMEs as they have developed their use of external networks. On the other hand, by doing so, larger firms are able to avail themselves of the flexibility longenjoyed by SMEs. This is particularly so in the electronics hardware-based sector, where we have evaluated the R&D activities of both large and small firms. Although SMEs continue to have the advantages of flexibility and rapid response, the traditional disadvantages due to size limitations may have worsened due to the demand for multiple technological competences and by increased cross-border competition.

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

“…Further, negative correlations appear to exist between university contact and competitors, and international network and competitors. These correlations are insignificant, otherwise they might have supported the existence of different SME efforts with regard to open innovation, whereby SMEs focus either on exploration through contacts with universities and international networks or on exploitation through contact with competitors (Narula 2004;Lee et al 2010). The overall SEM results are presented in Fig.…”

“…At the exploration stage, SMEs are most likely to use external partnerships, so they can concentrate on retaining high levels of internal competence in a limited number of technological areas (Narula 2004), whereby they show a preference for networking with public research institutes and universities because of the fear of giving away their technology to competitors (Tidd and Trewhella 1997). At the exploitation stage, SMEs attempt to create value by entering into supplier-customer relations with larger firms (Luukkonen 2005), outsourcing agreements, or strategic alliances with other SMEs (Edwards et al 2005).…”

Networked by design: Can policy requirements influence organisations' networking behaviour?

“…The underlying assumption is that policies are needed to stimulate interactions that would not occur spontaneously, but whose presence would be desirable (Carlsson and Jacobsson, 1997). Given SMEs' reluctance to embark on collaborative relationships (Bougrain and Haudeville, 2002;Narula, 2004;Muscio, 2007), policymakers could require networks to include a minimum number of participants, with the aim of broadening their connections. In order to encourage firms' openness to external sources of knowledge and to avoid knowledge lock-ins, policymakers may require the involvement of extra-regional or international participants (Dettman et al, 2012;Antonioli et al, 2014 (1980)(1981)(1982)(1983)(1984)(1985)(1986)(1987)(1988)(1989)(1990)(1991)(1992); (Sakakibara, 1997) Organisations of a particular nature to be included in the network Different competencies are needed in order to carry out an innovative project.…”

International Co-operation between Firms on Innovation and R&D: Empirical Evidence from Argentina and Spain

“…Nevertheless, smaller companies tend to concentrate in clusters geographic to take advantage of synergies in technologies of faster evolution. Most authors assume a positive correlation between firm size and cooperation in R&D, and innovation intensity (Molero, 1998;Bayona et al, 2001;Hidalgo Nuchera and Albors Garrigós, 2004a and b;Narula, 2004). As it shows in the table (Annex) for the total sample size of firm is related with companies that transfer technology from Spain to Argentina (p<0.1).…”

“…(3) related to market access and opportunities (internationalisation and entry to foreign markets, new products and markets, expansion of product range).. Nooteboom (1999);Narula (2002Narula ( , 2004Tether (2002); Vonortas et al (2003); Montoro et al (2006) Activity sector and technological intensity. In the case of small and medium sized enterprises (SME), the extent and intensity to which they can use collaboration varies by the maturity of their primary technologies.…”