The role of knowledge sources of SMEs for innovation perception and regional innovation policy

Abstract

The background of this study is the realization that our current understanding of innovation in SMEs is relatively poor, yet the encouragement of innovation in SMEs is at the heart of policy initiatives for stimulating economic development at the local, regional, national and European levels. The sample used for this analysis is drawn from a survey that questioned Dutch SMEs about their involvement in three Eastern Netherlands knowledge clusters that were part of a national economic priorities stimulation programme. SMEs that were located in the more rural sub-region Zwolle, namely, indicated that they were not able to profit enough from the programme. The paper explores if the innovation perception of the SMEs in this sub-region is affected by its collaborative knowledge sources in terms of different types of partners, and if structure of the networks may explain the lack of involvement of these SMEs in the programme.Also, it aims to explore if the internal power relationships of an SME -represented in this study by the education level of the owner/ manager of the SME -influences these relationships.Powerful actors within and outside the organization, namely, may influence the knowledge absorption processes. Results support the strong focus of SMEs on customers and suppliers for new knowledge and the positive role of higher education on the innovation process. In this study, no significant proof is found for the interaction of higher educated entrepreneurs on the relation between knowledge sources and innovation perception. Preliminary insight into the positive and negative interaction effect of the education level of the entrepreneur on the relation between knowledge sources and innovation perception, however, may provide interesting new research directions.

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