Large companies are increasingly looking externally for opportunities to enhance innovation which has resulted in closer study of innovation systems. We examined the role of service intermediaries (universities, technology centers and consultants) within these systems using a sample of predominately small and medium sized enterprises located in Valencia Spain.As with studies of large companies, absorptive capacity (e.g., research and development expenditures) was positively related to the likelihood that a firm would engage in service collaborations. However, the rate of collaboration was higher relative to studies dominated by larger companies. Also, there were differences in the pattern of firm characteristics associated with the use of specific services. For example, the level of SME export activity related positively to the use of technology centers, but negatively with university collaborations.Keywords: innovation systems; firm collaboration; intermediary organizations; technology centers
THE USE OF SERVICE INTERMEDIARIES FOR R&D 3 Innovation Systems and Firm Collaboration Among SMEsInnovation, the process by which new products, processes and/or services are introduced into the marketplace (Edwards & Gordon, 1984) is essential to the survival of small and medium sized enterprises (SMEs). As noted by Howells (2006) among others, increased collaboration and outsourcing over time has resulted in innovation systems that are relatively more open and distributed (Chesbrough, 2003;Gassmann, Enkel & Chesbrough, 2010). This investigation concerns the role of service intermediaries (e.g., universities, technology centers and consultants) in these systems, who through their interaction with multiple parties can facilitate the innovation process, especially in environments where firms and services are geographically clustered (Davenport, 2005;Howells, 2006;Zhang and Li, 2010).In changing contexts and when competition between firms increases, the generation of competitive advantage is going from material factors to intangible resources such as knowledge and innovation. However, the generation and diffusion of innovation requires access to suitable conditions. One of these conditions is the ability of the environment in which enterprises operate, and especially SMEs, to create "resources for innovation" (in the form of technical advisory services, R&D services, etc). These resources for innovation are channeled through intermediary organizations that perform actions of connection between users and providers (Bellini, 2002).In considering the possibility that a firm will benefit from open innovation, the institutional infrastructure in its immediate environment is an important consideration (MolinaMorales, 2005). The territorial environment of firms varies in terms the presence of universities, technology centers, engineering, and consultancy services (Benneworth & Dawley, 2004) which can influence the potential for synergistic interaction (Edquist, 1997;Lundvall, 1992 demonstrated that company ties to service in...