Innovation, collaboration and SMEs internal research capacities

The aim of this research paper is to assess how SMEs' internal research capacities help them to exploit external scientific and technical knowledge and to use networks of innovators. Our empirical analysis draws upon case studies made of projects which were partly financed by ANVAR, a French national agency responsible for the development of innovation projects in industry. The results of this study are three-fold. Technological co-operation does not seem to increase the chance of success of innovative projects. R&D intensity does not lead to discriminate between success and failure. Internal R&D capacities, such as a design office, enhance the firm's ability to co-operate and to carry its project to success. (C) 2002 Elsevier Science B.V. All rights reserved.