Innovative Behaviour of Small and Medium-Sized Enterprises of an Industrial Region

Abstract

Small and medium-sized enterprises are the drivers of economic development of any macro-system. In the context of technological paradigm shift, successful operation of small and medium-sized enterprises largely depends on innovations. Therefore, it is advisable to examine innovative behaviour of these firms. The study aims to analyse the innovative behaviour of small and medium-sized enterprises of an industrial region, assess the funding of innovation activities, and identify factors that determine the innovation policy of small and medium-sized firms. Additionally, the paper suggests how state and municipal authorities can stimulate the innovative development of small and medium-sized enterprises. The initial data were the results of a survey of representatives of small and medium-sized enterprises in a Russian industrial region, which was conducted from May to September 2019 in the Sverdlovsk region. I interviewed 157 small and medium-sized enterprise managers in the Sverdlovsk region from various sectors of economic activity. The applied methods include in-depth interviews with managers, the statistical analysis method, and the logical systematic approach. The conducted research allowed identifying the features of the innovative behaviour of small and medium-sized firms in the Sverdlovsk region. Based on the analysis of the reasons for the low innovation activity of small and medium-sized enterprises, I developed recommendations for its improvement in the Sverdlovsk region. To solve the problem of low innovation activity in an industrial region, it is necessary for state and municipal authorities to stimulate innovative behaviour of small and medium-sized firms. Managers of small and medium-sized enterprises can use the obtained results to increase their activity. State and municipal authorities can apply the findings to develop programmes stimulating innovative behaviour of small and medium-sized enterprises.