In this paper the authors describe the ongoing development of a specialized advisory service aimed at promoting innovation in local manufacturing SMEs. The first stage studies the levels of process and product innovation, and level of innovation need, through a telephone survey of 156 small and medium-sized manufacturing companies and a number of follow-up interviews. The following stage involves the development of audit tools designed to identify gaps in innovation capability, and a change methodology to help companies become more innovative. These tools will be piloted with a number of local SMEs and then disseminated more widely to companies and business support agencies. The paper focuses on issues related to innovation in small and medium-sized manufacturing companies and explores these in relation to the initial findings of the survey.
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Carmichael et al. (2000) studied this question.