Knowledge absorption and innovation in UK SMEs: A study by economic sector and place

Abstract

This study focusses on knowledge absorption in SMEs and their abilities to develop innovations. It does so by examining SMEs in three different economic sectors, namely, manufacturing, high-tech and services. In doing so it provides one of the first comparative studies of SMEs within these different sectors. It also examines variations by place and compares the performance of SMEs across four distinct places within the UK. The research is based around both a quantitative analysis of firm performances followed by a detailed in-depth qualitative study. Our results focussed on the stages of knowledge transfer from acquisition, assimilation, through to the transformation and exploitation of knowledge. The findings draw attention to the significance. of management practices within SMEs and recognised the importance of open innovation. The study indicates that place alone does not play a key role, compared with the industry sector.

Keywords

• smes
• knowledge management
• innovation
• absorptive capacity
• place