Endogenous Innovation Potential: Regional SMEs’ Perspective in Emerging Economies
Purpose: The objective of this paper is to determine the endogenous innovation potential of regional SMEs in emerging economies (EE). The presented research examines where the SME sector stands within the economy, especially an emerging one, with particular emphasis on the circumstances surrounding business innovation and an innovative economy in conditions of sustainable development. Design/Methodology/Approach: A current understanding of the concept of SMEs along with the consequences for enterprises that arise from their inclusion within the analyzed sector is described. To achieve this goal, a group of innovatory indicators have been developed that are particularly important for the growth of the innovative potential of enterprises in the SME sector. Activities are also indicated that are particularly important for the development of the innovative potential of this sector. A research hypothesis concerning the endogenous innovatory activity of the SMEs in the region under analysis is proffered in this work. Findings: On an empirical level, based on the analysis, it can be pointed out that the key to competitiveness is innovation, and the pace of change in techniques, technology and organization means that only an enterprise capable of introducing innovative changes can survive in the market. Practical Implications: The enterprises surveyed, in terms of SME in the Opole Voivodeship, Poland, are characterized by innovatory potential. This will contribute to the perception of this sector not only as the dominant one in terms of quantity when considering all the enterprises on the market, but also as an equal partner among innovative enterprises of the region. Originality/Value: Relevant to the development of the whole SME sector is the fact that it not only derives from external innovatory potential but is itself increasingly a source and driving force. Research fulfils the gap in the using new tool – neural networks (NN) to analysis of economical phenomenon such as innovational potential of enterprises, establishes the model concerning the use of a group of innovativeness indicators for the growth of enterprise innovativeness and purposes new definition of innovation as well.