Managing Innovation in SMEs

Innovating and developing new products is critical for the survival and growth of any small firm, but particularly for technology-based firms.This study of NPD at small Irish electronics firms makes two main contributions to knowledge. Firstly, the management of NPD at small firms is found to be different from that at large firms in several respects, including: NPD resources and expenditure, organising for NPD, NPD process proficiency, marketing and technical skills and proficiency, R&D/marketing integration, top management support, and, new product and market characteristics. These differences are shown to have implications for managers, policy makers and researchers. Secondly, this study provides a unique insight into the management of NPD in Irish firms and facilitates a comparison between NPD in Irish firms and those in other countries. Some of the key features of NPD in Ireland highlighted by this study are; NPD at large Irish electronics firms is mainly incremental, Irish firms are good at developing technically difficult new product but are slow to enter new markets, and, Irish electronics firms do not have well developed project management skills.