Innovation Sources of Large and Small Technology-Based Firms

Prior research studies have concluded that the innovative output of small and medium sized firms (SMEs) exceeds that of larger firms. One of the critical ingredients of innovation is the source of the idea or inspiration for the innovation. The purpose of this study was to compare the relative importance of 14 different sources of product and process innovation as reported by 235 professional R&D workers in large and small technology-based firms. While overall there was agreement on the importance of a number of sources, R&D professionals in SMEs valued customers, coworkers, marketing, and journals more highly, while professionals in large firms valued suppliers more highly. Implications of these results, in light of the previous research studies on innovation, are addressed.