A new approach to business innovation modes: the ‘Research, Technology and Human Resource Management (RTH) model’ in the ICT sector in Belarus.

Abstract

Echoing previous contributions on ‘STI and DUI innovation modes’ (science and technology-based innovation, and innovation based on learning-by-doing, by-using and by-interacting), this study discusses their role in small and medium-sized enterprise (SME) ability to develop novel products. In particular, the RTH model (based on Research, Technology and Human Resource Management) is proposed so as to describe the most effective approach taken by innovative SMEs. On these bases, the STI and DUI modes are changed for a more empirical identification of business innovation modes centred on differentiating among three separate drivers of innovation: Research (R), non- research and development (R&D) Technology (T) and Human Resource management (HRM). The study focuses on analysing how different drivers of innovation can be effectively aggregated within a firm to support its ability to produce innovation. We propose a new research instrument – RTH model – and test on a sample of SMEs in the ICT sphere that operates in a technology-follower country in transition, Belarus. The results of the econometric analyses show insightful outcomes, that is, the novelty of product innovation is more sensitive to the Technology and HRM drivers than to the Research driver.