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Essays On Innovativeness And Its Evaluation In Small And Medium-Sized Enterprises

Publisher   Lappeenranta University of Technology, Lappeenranta, Finland.
Series and Number of Publication   Research Papers No 49. (Doctoral Thesis)   ISBN 951-763-006-4   ISSN 0356-8210
Year of Publication   1995
Author   Liisa Hyvärinen

Abstract
The thesis consists of four articles on the attributes and indicators of innovativeness small and medium-sized industrial enterprises (SMEs).
In the definitions of innovativeness gathered from the literature and from the interviews of six SME managers and ten business analysts, innovativeness in connected with the newness of the innovation. Other important attributes are markets, differentiation from other enterprises and the creativity of individuals. Human and individual aspects are emphasised by business analysts and SME managers, whereas the literature gives more value to the environment, products and markets.
With regard to the indicators of innovativeness, the business analysts consider characteristics connected with the enterprise and its manager as important in the input evaluation of SMEs’ development projects to be financed. The commercial success of products is the most important output criterion. In the case enterprises examined here, the decisions on and the evaluation of development projects is partly intuitive and may be unconscious, too, due to their few development activities. The SME managers place the main emphasis on financial indicators, although both numerical and qualitative evaluation and decision criteria are employed. Possible reasons for this are the limited financial resources of the SMEs and the idea of today's ideal manager being an analytic controller of financing. However, innovative managers consider making innovations as one of the bright sides of life.
The innovative case enterprises examined here are future- and growth-oriented at the strategic level. On the operational level, they make inventions and innovations. Nevertheless, they have few patents. Both the innovative and less innovative case enterprises are strongly customer-oriented and they have specialised products and customers. Most of their development activities concerning products and processes are related to satisfying their customers' needs.

Number of pages   25 pages (and 4 published journal articles attached)

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