Entrepreneurship and Innovation Strategies in ICT SMEs in Enlarged Europe (EU25)
Kaushalesh Lal & Theo Dunnewijk
#2008-016
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