Innovation Strategies in SME

Abstract

Small and Medium Enterprises (SMEs) play a vital role in a country's economic development. The current trend of economic growth and rapid industrial development has made many countries open up their economies to the world. In conjunction, governments the world over are devoting and designing SME development plans to assist the SMEs in meeting new business challenges in the competitive global business environment. The focus of this chapter is identifying and analyzing innovation strategies in SMEs, drivers of innovation in SMEs from global perspective, and understanding the need of effective HRM to drive innovation. This will help in getting an idea about the competitiveness facing SMEs in the global business environment since challenges of SMEs in a globalized market together with economic turmoil is the reality. Further, two mini-cases reflecting SME innovation strategies are provided for better understanding.