Factors that increase SMEs' likelihood to collaborate with other organisations

What is it about?

This article investigates what factors increase the likelihood of SMEs to collaborate with other organisations (other SMEs, universities, innovation intermediaries, public research organisations). Considering a set of SMEs participating in publicly-funded innovation networks, we find that SMEs are more likely to collaborate with organisations: (i) with which they have already collaborated previously, particularly if this collaboration was repeated several times; (ii) which are geographically closer; (iii) which are more successful in obtaining public funds, and (iv) which rely on the same innovation intermediaries.

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Why is it important?

The article sheds light on the factors that promote SMEs' involvement in publicly-funded innovation networks; this understanding is helpful since SMEs are notoriously difficult to involve in collaborations with universities, public research organisations, and large firms, even though they benefit hugely from them. Our findings suggest that innovation intermediaries play an important role in involving SMEs in innovation networks, and that co-localisation and established relationships, particularly with more successful organisations, are also important.