Entrepreneurship and Innovation Strategies in ICT SMEs in Enlarged Europe (EU25)

Kaushalesh Lal & Theo Dunnewijk


Innovation strategies of entrepreneurs are mapped with growth and performance of their firms in this study. Findings of the study are based on the data collected from 1238 small ICT firms located in 25 member states of European Union. The survey was conducted during October 2006 and March 2007. Results of Logit analysis suggest that firms that pursued continuous innovation strategies experienced more employment growth, higher profitability, and better sales dynamics than those that adopted occasional innovation approach. Market growth of continuous innovating firms realized faster pace than other type of firms. Another distinguishing characteristic of two types of firms emerged is market preference. Target market of continuous innovating firms has been European or global markets while innovative activities of other firms targeted domestic market. The study concludes that European innovation policies should be focused towards continuous innovation activities with due attention at human resource development policies. Keywords: dynamic capabilities, continuous innovation, occasional innovation, competitiveness, human resources, internationalization

UNU-MERIT Working Papers ISSN 1871-9872

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