| dc.description.abstract | The role of innovation in SMEs is strategic in shaping the ability of the firm to compete;
innovation depends on on the firms’ ability to identify, assimilate and exploit
knowledge from all around. Generally, an important source of knowledge is the R&D
because it helps the firm in developing an absorptive capacity (Cohen, Levinthal, 1989)
and also it is a strategic input of the path to innovation. If the firm is too small to afford
R&D expenses this important source of knowledge creation is unavailable. Nevertheless
SMEs can create and enrich knowledge thanks to human capital (Grant, 1996; Hodgson,
1998) and networks (Becattini, 1989) both inside and outside the firm itself.
Human capital is considered in two ways, the one of the entrepreneur (Colombo, Grilli,
2005) and the other of the employees. Another source of knowledge are the networks;
they give access to information that can be used in knowledge creation; there are two
main kind of networks the firm is involved: the first is the internal network made by the
relation established inside the firm (e.g. measured in terms of workers participation in
the decision process of the firm); the second is the external network, measured in terms
of relations with other firms (Becattini, 1989, Becattini et al 2009) and with other
actors, such as suppliers, buyers, and customers (De Devitiis et al. 2009).
Two different bivariate models are used; the first one aims to measure the effects of
knowledge on innovation, and the second looks at the performance gained thanks to
innovation. The results of the first model show that human capital plays a positive role
on innovation; innovation is also positively influenced by the dimension of the firm,
training and workers participation in the strategic decision; anyway, those elements are
not significant for the probability to increase sales.
The probability to increase the sales is positively influenced by owner’s/entrepreneur’s
characteristics such as a higher age and previous working experience as self-employed;
the probability is also influenced positively if the firm sells is oriented to sell its
products in non local markets (other than regional ones). Many firms found innovation a
key resource; in fact, those which are less likely to increase sales are pushed to innovate
in order to catch up the other firm and get a positive result from innovation. Something
similar happens when the entrepreneur has a high level of education; in this case
innovation is a key element in the effort of catching up competitors.
There are also some policy implication: the first one bases on the positive results of
innovation and we suggest to reinforce the incentives to innovate, but also to enrich,
enlarge and render more effective the relations within and between the firms (Grant,
1996) and enhance human capital in the firm. Another important implication refers to a
system of support to extend the market sales outside the Southern area of Italy. In this
case enlarging the market the firm will face a stronger competition but at the same time
it can have more information to analyze about its sector; this can generate an awareness
of the necessity of innovation to better face competition. [edited by author] | it_IT |
