Getting the Tail to Wag: Developing innovations capability in SMEs

Abstract

This paper reviews the concept of absorptive capacity and its relationship to innovation management capability. It explores four key questions concerning definition, dimensions, distribution and development of AC and presents a model framework for examining policy interventions aimed at enhancing it. ‘Broadcast’, ‘agent assisted’ and ‘peer-assisted’ modes are discussed with reference to examples drawn from case study and survey research across several sectors.