SME modes of innovation in European catching-up countries: The impact of STI and DUI drivers on technological innovation.

Abstract

At the intersection of SME innovation and innovation systems, this study investigates the characteristics of SME innovation modes in catching-up European countries (Southern, and Central and Eastern European) and compare it with selected among the most advanced countries in Europe as a mean to show key differences. Distinguishing between STI (Science, Technology and Innovation) and DUI (learning-by-Doing, Using and Interacting) innovation drivers, and analyzing their impact on technological innovation we study 29,834 SMEs innovation in 15 countries. We argue that the most effective SME innovation modes in catching-up countries are peculiar vis-à-vis other types of countries (e.g. advanced economies). Results show how their economic, institutional and innovation context influence SME forms of knowledge and learning. In general, catching-up countries show effective DUI-type collaborations for process innovations, while showing more limited returns than advanced countries from the STI mode of innovation.