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8 Co-ordinating Multi-Firm Innovative Processes: Entrepreneur as Catalyst in Small-Firm Networks
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Published:June 1997
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Abstract
The relationship between firm size and innovation has traditionally generated a vivid debate in the literature. Earlier studies, primarily rooted in economics, were based on the assumption that the increasing costs and complexity of research activities favoured larger firms at the expense of smaller ones (Comanor 1967; Kamien and Schwartz 1975; Mansfield 1963). However, more recent contributions have challenged this perspective both within (Acs and Audretsch 1990) and outside (Tushman and Anderson 1986) the economic tradition. Small and medium-sized firms not only actively contribute to the innovation process, but they frequently represent the natural source of variation required to challenge the structural inertia of larger firms and to foster economic growth.
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