The Innovativeness and Growth of Rural SMEs During the 1990s

NORTH D. and SMALLBONE D. (2000) The innovativeness and growth of rural SMEs during the 1990s, Reg Studies 34, 145 ± 157. The paper summarizes the results of a study of innovation in rural small and medium sized enterprises (SMEs) in England over the 1991 ± 96 period. It is based on a survey of 330 ® rms drawn from 16 sectors and makes a comparison between similar SMEs in remote and accessible rural areas. Using a multi-dimensional index of innovation, relatively little overall diVerence is found in the level of innovation between SMEs in the diVerent areas. A remote rural location is shown to in ¯ uence innovation in diVerent aspects of the business in diVerent ways. The most innovative ® rms are shown to be those that have achieved the fastest growth and best employment creation during the 1990s.