SMEs in regional innovation systems and the role of innovation support - The case of upper Austria

In the past large firms were regarded as the main driving forces for innovation, but, more recently, the interest has shifted to SMEs as well as networks of firms. It has been recognized that SMEs innovate in a specific way and that they face size-specific barriers. To be able to rely on innovation partners and to be involved in regional or national innovation systems seems to be of critical importance for SMEs. This paper presents the empirical results of a firm survey in Upper Austria, a region with a long industrial tradition in Austria, investigating the extent to which SMEs are actually engaged in innovation networks and the role of public innovation support in this context. The findings show that SMEs which have received innovation support are more successful innovators than those which have not, and that innovation cooperations are rather rare. Most external relations are with other firms and within the region, very few with knowledge providers from science and technology. At present, innovation support instruments do not sufficiently target the deficits of non-innovative SMEs and the problems in linking up with innovation networks and broadening firms' relations beyond the region. © 2002 Kluwer Academic Publishers.