Small business innovation: firm level evidence from Sweden

Document type: Journal Articles
Article type: Original article
Peer reviewed: Yes
Author(s): Martin Andersson, Hans Lööf
Title: Small business innovation: firm level evidence from Sweden
Journal: Journal of Technology Transfer
Year: 2012
Volume: 37
Issue: 5
Pagination: 732-754
ISSN: 0892-9912
Publisher: Springer
URI/DOI: 10.1007/s10961-011-9216-9
ISI number: 000308644100009
Organization: Blekinge Institute of Technology
Department: School of Management (Sektionen för management)
School of Management S- 371 79 Karlskrona
+46 455 38 50 00
Language: English
Abstract: This paper examines innovation among very small firms and provides new insights into both internal and external determinants of patenting. Applying a non-linear panel data approach to about 160,000 observations on manufacturing firms in Sweden for the period 2000-2006, the following facts emerge: (i) in contrast to larger firms, innovation in micro firms with 1-10 employees is not sensitive to variation in internal financial resources, (ii) skilled labour is even more important for innovation among micro firms compared to other firms, (iii) affiliation to a domestically owned multinational enterprise group increases the innovation capacity of small businesses, (iv) small firms' innovation is closely linked to participation in international trade and exports to the G7-countries, and (v) there is no statistically significant evidence that proximity to metropolitan areas, or presence in a specialized cluster, increases the innovativeness of the smallest firm
Subject: Business Administration\Organization
Keywords: Entrepreneurship, Innovation, Innovative firms, Intellectual property rights, Location, Small firms, Technology transfer