Innovation Sources of Large and Small Technology-Based Firms

This study compares the relative importance of fourteen sources of product and process innovations based on responses by 235 professional R&D workers in small and large technology-based firms. Participants included 121 R&D engineers working in SMEs and 114 engineers working in large firms, all located in North America.A multivariate analysis of variance was used to test for differences among the two groups. Findings showed that SMEs rated customers, coworkers, marketing, and professional journals highly as sources of innovation, while large firms only rated suppliers more highly as sources of innovation.No statistical differences were found between large firms and SMEs for nine of the fourteen sources innovation studied, namely, competitors internal R&D, manufacturing, top management, cooperation with other firms, supplies, universities/research centers, consultants, and the Internet. Hence, organizational climate rather than firm size may be the determinant in the sources of innovation used by large and small firms. (JSD)