Innovation experience of entrepreneurs of high tech SMEs in Turkey

Abstract

Purpose-The goal of this study is to explore and define the barriers to innovation perceived and experienced by entrepreneurs of High Tech SMEs in Turkey. Methodology-In order to investigate the research question, an online questionnaire that was created for the purpose of this analysis. Questionnaire consists of 25 questions covering up four groups of barriers to innovation (formal, informal, environmental and skill barriers). In total, 225 High Tech SME entrepreneurs from the Istanbul region completed the questionnaire. Logit models were estimated using the Eviews software programme. Findings-An analysis of 225 High Tech Turkish SME entrepreneurs reveals the fact that "lack of sufficient government's R&D and technology policy" from formal barriers; "Informal economy's negative impact on investment" from informal barriers; "high cost of innovation" and "lack of appropriate source of finance" from environmental barriers and "lack of qualified personnel" from skill barriers, are the most important barriers, which have significant effects on the entrepreneurs' innovation decisions in Turkey. Conclusion-The survey results show that entrepreneurs, who know how to innovate, are those who have more perception of the barriers to innovation. However it is observed through the logistic regression model that some of the relations established between the barriers to innovation and the entrepreneurial innovative capacity are not statistically significant.