Emergence of Product and Service Innovations of Different Level of Novelty in Knowledge Intensive SMEs: The Role of Open Innovation Patterns

Purpose: The aim of the contribution is to evaluate the importance of domestic and foreign collaborative ties between knowledge-intensive SMEs and knowledge sources for the creation of product and service innovations which we differentiate according to the spatial level of novelty. Methodology/Approach: In order to test the validity of the hypotheses which were justified in the context of previous research we adopt an econometric approach and specifically, due to the nature of the dependent variable, the logistic regression. Findings: The results support the hypotheses that the determinants of innovation in SMEs vary in case of innovations with different level of novelty. Open innovation practices are crucial rather for SMEs delivering innovations of products and services novel on national and international markets. Research Limitation/Implication: The research does not reflect the frequency of innovative products and services at the enterprise level as well as the impact of new products and services on turnover. Originality/Value of paper: In particular, the study brings new insights into the determinants of product innovation of a lower degree of novelty applied in local and regional markets which can be an important source of development for low-density economies.