The role of research and technology organizations in innovation processes of small and medium-sized enterprises

The main challenge in innovation seems to be not a lack of ideas, but a deficit in the evaluation and transformation of ideas into new processes or products. Due to their specific characteristics and the fact that innovations of SMEs are application-oriented, SMEs depend on external know-how for fundamental research. They therefore need a support network that translates the knowledge necessary for successful innovation into their language. Technical feasibility studies provided by research and technology organizations (RTOs) are designed to promote this knowledge transformation and transfer to SMEs. In this paper, the authors examine whether or not technical feasibility studies can facilitate knowledge transfer between SMEs and RTOs. The results of a literature review and an empirical investigation of the Feasibility Studies Program of the Austrian Industrial Research Promotion Fund reveal evidence of a stimulating effect of technical feasibility studies on SMEs' innovative activities. They also identify prerequisites for SMEs to tap the full potential of their interaction with RTOs. First, there has to be a developed research scene that is willing and able to meet the needs of SMEs. Second, SMEs have to recognize the potential advantages of working together with RTOs in the innovation process and to overcome their common fear of contact with RTOs. The insights presented may enhance the quality of similar initiatives now and in the future.