dissertation in pdf-format - Aalto-yliopisto

_____________________________________________________________
PART 1: OVERVIEW OF THE DISSERTATION
_____________________________________________________________
1 Introduction
1.1 Relevance of the studies
Innovation is regarded as one of the most important drivers of growth and
profits (Bhide, 2000; Schumpeter, 1934). Therefore, innovation and growth
policies in Europe have been strongly targeted to enhance the creation and
exploitation of innovation, particularly in small and medium sized firms
(SMEs). However, despite intense apparent investment of effort and
resources in fostering innovation the proportion of innovative, highly
growing and successful (IHGS) SMEs is marginal. One of the reasons for
the small proportion of IHGS firms may be the so-called ‘profiting from
innovation paradox’, i.e. the frequent failure of firms to obtain significant
profits from innovation, since they lack the ability to develop,
commercialise and sell inventions successfully, especially in global markets
(Autio, 2009; Teece, 1986, 2006). In order to discover possible solutions to
this problem there is a need to examine more deeply the relationships
between innovation and both the growth and success of firms.
Recent empirical surveys have firmly established that only small
proportions of entrepreneurial firms in advanced economies such as the US
and Europe achieve and maintain high-growth (Acs et al., 2008; Autio and
Hölzl, 2008). However, this small minority has a disproportionally strong
economic impact. Autio (2009) found that between 3 and 10 per cent of any
new cohort of firms will deliver 50 to 80 per cent of the aggregate economic
impact of the cohort over its lifetime. Thus, the growth of entrepreneurial
firms is clearly an important phenomenon to examine for researchers (and
policymakers) interested in entrepreneurial activities, economic growth and
associated factors.
5