Analysis of SMEs' innovation capability: Towards a taxonomic approach based on internal and contextual factors
Abstract
The objective of this research work is to identify standard profiles that reflect the innovative behavior of SMEs in relation to the maturity of their internal practices. A method of Hierarchical Ascending Classification (HAC) was applied to a panel of 319 SMEs by combining an evaluation of 6 innovation practices from the Potential Innovation Index (PII) framework with contextual variables related to the structure, the environment and the market of the companies. The results showed that 6 profiles could be identified and that they reflect specific innovative behaviors. While some of these profiles seem to be slightly connected to particular business sectors or geographical areas, factors related to the structure of the firm itself (size in particular) do not seem to be differentiating.