Management of the innovation process in small companies in Finland

Product development in small companies in the metal and electronics industries in Finland is described. Forty companies were surveyed. The size of the analyzed companies varied between one and 260 measured by the number of employees. Structured interviews were conducted by interviewers using a questionnaire design. The topics analyzed include mission and production strategy, market research, innovation type and volume of product development, financing and controlling new product development, profitability of new products, and contacts with other institutions. The study proved that small companies are very active in the development and utilization of innovations. In ideas for new product development the role of top management is most important. Many small companies try to be the first in the market. They do not use sophisticated methods for generating new ideas or for their development or evaluation. Small enterprises spend relatively more money in product development than bigger companies. Nevertheless, international funds are the most important source of funds to finance new products.>