Template-type: ReDIF-Paper 1.0
Author-Name: Bala Subrahmanya, M. H.
Author-Email: bala@mgmt.iisc.ernet.in
Author-Workplace-Name: Indian Institute of Science
Author-Name: Mathirajan, M.
Author-Workplace-Name: Anna University
Author-Name: Krishnaswamy, K. N.
Author-Workplace-Name: Indian Institute of Science
Title: Importance of Technological Innovation for SME Growth - Evidence from India
Abstract: This paper probes the drivers, dimensions, achievements, and outcomes of 
	 technological innovations carried out by SMEs in the auto components, 
	 electronics, and machine tool sectors of Bangalore in India. Further, it 
	 ascertains the growth rates of innovative SMEs vis-a-vis noninnovative 
	 SMEs in terms of sales turnover, employment, and investment. Thereafter, 
	 it probes the relationship between innovation and growth of SMEs by (i) 
	 estimating a correlation between innovation sales and sales growth, (ii) 
	 calculating innovation sales for high, medium, and low growth innovative 
	 SMEs and doing a one-way ANOVA, and (iii) ascertaining the influence of 
	 innovation sales, along with investment growth and employment growth on 
	 gross value-added growth by means of multiple regression analysis. The 
	 paper brings out substantial evidence to argue that innovations of SMEs 
	 contributed to their growth.
Classification-JEL: L25, L26
Keywords: technological innovations, sales growth, auto components, electronics,
	 machine tools, Bangalore
Series: UNU-MERIT Working Papers
Creation-Date: 2010
Number: 007
File-URL: http://www.merit.unu.edu/publications/wppdf/2010/wp2010-007.pdf
File-Format: application/pdf
File-Size: 275 Kb
Handle: RePEc:unm:unumer:2010007