The role of government, universities, and businesses in advancing technology for SMEs’ innovativeness

Abstract

Knowledge and technologies play an essential part in this rapid-response capability, by maintaining opportunities for continuous improvement and innovation needed in the development of sustainable competitive advantage. However, the low capability of SMEs to provide the required resources is a barrier to the in-house technology development. Consequently, external resources such as government, businesses, and universities, to support their performance in developing technological capabilities utilize so-called ‘knowledge and technology transfer’ programs, which are needed as a shortcut to improve technological process innovation. This study provides theoretical and empirical support for the role of government, businesses, and universities in transferring knowledge and technology for SMEs’ innovativeness in emerging economies and the impact of process innovation on SMEs’ competitiveness. The results suggest policy directions for governments to support SMEs in emerging economies.

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