Technological Collaboration: Bridging the Innovation Gap between Small and Large Firms Articles uri icon

publication date

  • January 2010

start page

  • 44

end page

  • 69

issue

  • 1

volume

  • 48

international standard serial number (ISSN)

  • 0047-2778

electronic international standard serial number (EISSN)

  • 1540-627X

abstract

  • This paper analyzes how technological collaboration acts as an input to the innovation process and allows small and medium-sized enterprises to bridge the innovation gap with their bigger counterparts. Based on a
    large longitudinal sample of Spanish manufacturing firms, the results
    show that though technological collaboration is a useful mechanism for
    firms of all sizes to improve innovativeness, it is a critical factor
    for the smallest firms. The impact of this collaboration varies
    depending on innovation output and type of partner. Specifically, the
    impact of collaboration in small and medium-sized firms is more
    significant for product than process innovations. Regarding type of
    partner, vertical collaboration—with suppliers and clients—has the
    greatest impact on firm innovativeness, though this effect is clearer
    for medium-sized enterprises than for the smallest firms.