Table 1.

SMEs and LCs’ differences in innovation approaches

SMEsvsLCsRelevant citations
Strategic orientation
Pursuit of emerging opportunitiesvsInternal resources planningStevenson and Jarillo (1990)
Gagnon and Toulouse (1993) 
Use of external resources and competenciesvsOwnership and controlRothwell (1989)
Gagnon and Toulouse (1993) 
New (and uncertain) techno-market regimesvsDefined technological possibilities and paths to the marketAcs and Audretsch (1987)
Rothwell (1989), Thurik (2009) 
Management orientation
Fast decision-makingvsStructured, stage-gate decision processesGagnon and Toulouse (1993)
Vossen (1998) 
Alignment of R&D and management objectives Functional expertise and management accountingStevenson and Jarillo (1990)
Gagnon and Toulouse (1993)
Nooteboom (1994), Vossen (1998) 
External networkingMonitoringHagedoorn (1995), Freel (2003) 
R&D setting
Short learning curves, adaptability of routines Long learning curves, established routinesAcs and Audretsch (1987);
Vossen (1998) 
Small R&D operations (problem-solving approach) Systematic R&D activitiesAudretsch and Thurik (2004)
Thurik (2009) 
Collaborative R&D Centralized R&DFreel (2003) 
Organizational context
Integration of tasks in employees; variation and improvisation Employees specializationNooteboom (1994) 
Flat managerial structure Hierarchical managerial structureGagnon and Toulouse (1993)
Vossen (1998) 
Use of external resources and innovation assets Internalization of relevant (“core”) resources and competenciesFreel (2003) 
Sources of competitive advantage
Early stages of product’s life cycle Late stages of product’s life cycleAcs and Audretsch (1987) 
Low barriers to entry Scale advantages, entry barriersAcs and Audretsch (1987)
Rothwell (1989), Vossen (1998) 
Tacit, idiosyncratic knowledge Codified knowledgeNooteboom (1994) 
Knowledge appropriability Formal IP protectionRothwell (1989)
Nooteboom (1994), Vossen (1998) 
Capacity for customization Economies of scope, diversificationRothwell (1989)
Vossen (1998) 

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