“…SMEs have been developing new products and processes based on their own R&D efforts and/or collaborative innovation activities with outside technological agencies (Kim, et al, 1993;Kim, 1997;Kim and Lee, 2002), with a few of them having developed world-class new products (Lee and Rhee, 2008). However, all these studies that examined the innovation activities and development of innovation capabilities of latecomer firms are mainly descriptive and based on the case study research design (e.g.…”