An empirical research on utilization of information sources for innovation in regional high-tech SMEs

In this paper, we investigated how regional high-tech SMEs in Japan utilize external and internal information sources in order to realize innovations. Significance of contributions of various information sources is analyzed with a regional perspective. Based on a questionnaire survey data in accordance with Oslo Manual, it is shown that target firms utilize multiple external information sources such as “customers”, “universities” and “suppliers” in parallel. It is also found that they simultaneously regard “internal resources” as an important information source for innovation. Furthermore, according to multiple regression analysis at firm level, firm's internal resources contribute significantly to the realization of novel product innovations leading the market. Concerning the location of SMEs, when they try to create various types of innovations, it is not always advantageous to be located in Tokyo or its suburbs (North Kanto or South Kanto) where both companies and information are highly concentrated.