FROM EFFORTS TO OUTCOMES: A CONCEPTUAL FRAMEWORK FOR UNDERSTANDING INNOVATION INTENSITY IN SMEs

Abstract

Abstract 

This study proposes a conceptual framework to better understand what drives innovation intensity in small and medium-sized enterprises (SMEs), by exploring how internal capabilities, public support, and managerial attributes interact to shape innovation outcomes. Anchored in the Resource-Based View and Dynamic Capabilities theory, the framework addresses a pressing reality: many SMEs struggle to consistently transform their innovation efforts into meaningful results. This challenge stems from four persistent gaps—limited internal resources to initiate innovation (effort gap), misalignment or weak reach of public support programs (support gap), a lack of leadership commitment to innovation (leadership gap), and a disconnect between efforts made and outcomes achieved (translation gap). The framework clarifies the difference between innovation efforts—the strategic investments and actions taken to foster innovation—and innovation intensity—the depth, frequency, and scope of actual innovation results. It brings together key determinants across three pillars: firm characteristics, public support and the managerial qualities of SME managers. This contribution aims not only to enrich academic discourse, but also to guide policymakers in crafting more effective support tools, and to help SME leaders build the right conditions internally for innovation to thrive.

Keywords: Innovation Intensity; Product Innovation; Process Innovation; Technological Innovation; Public support; managerial attributes; Dynamic Capabilities; Resource-Based View.