Technological Innovation and Small Firms: A Taxonomy

Abstract

DR. AIINA RIZZONI IS A RESEARCH fellow at the Institute of Management Studies at the University of Urbino, Italy. The high heterogeneity which characterises small firms as a whole is also clearly reflected in their innovative behaviour. Thus, there is the opportunity to develop an analytical approach to the study of technological innovation in small firms while not overlooking the most important aspects of differentiation. A typology of small firms has been worked out with reference to the various roles played by such firms in innovative processes. The model here delineates six types of small firms. Each one is characterised not only by a different behaviour towards technological innovation but also by different strategic, structural and environmental approaches. An interpretation of the basic differentiations in the innovative behaviour of small firms is then suggested. These differences are substantially due to the entrepreneurial skills of small business operators and to the environmental pressures.