“…In such market conditions, there is a general consensus that competitiveness of tourism enterprises increasingly depends upon their innovation activity bringing about lower costs and/or higher quality output Gnoth, 2005, Chadee andMattsson, 1996;Mattsson and Or…la-Sintes, 2009 (Hjalager, 1997, 2002, Jacob et al , 2003Nordin, 2003;OECD, 2003;Sørensen, 2004;Volo, 2004Volo, , 2005Frechse, 2005, Pikkemaat andPeters, 2005;Pechlaner et al, 2005;Weiermair, 2005;Mattsson et al, 2005, Or…la-Sintes et al, 2005Walder et al (Eds. ), 2006;Or…la-Sintes and Mattsson, 2007, Ottenbacher and Gnoth, 2005, Novelli et al 2006Sundbo et al 2007;Pikkematt and Weiermar, 2007;Hall and Williams, 2008;Hjalager et al, 2008;Pikkemaat, 2008;Hall, 2009, Mattsson andHjalager, 2010 Hjalager (2010, p. 1) that "innovation has become a buzzword which in many cases is used without deeper re ‡ection for anything that is moderately novel" points out to a needed caution and academic rigour in discussion and research on this complex and important issue. Previous studies have shown that the degree of innovation in tourism is lower than in other industries (Volo, 2004) and that companies operating in tourism are in most cases only moderately innovative (Hjalager, 2002 Page:343 industry dominated by small and medium sized businesses while large enterprises are generally considered to be more innovative (Hjalager, 2002).…”