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Appendix 1 Key definitions used in the studies
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Appendixes
Key concepts in this dissertation are innovation, high growth, high success,
SME and definitions of rural and urban areas. These key concepts, as used
here, are defined as follows:
Innovation
Two contrasting definitions of innovations have been used. In Articles I and
II the focus was on innovation inputs, hence intellectual property rights
(IPRs), such as patents, utility models, registered designs and trademarks,
were used as proxies for innovation and innovative activities of the studied
firms. The IPRs were used as proxies because relevant data (broken down
into very detailed technological sectors) are available for many countries.
This information allows the most precise and reliable classification of
innovation and R&D activities, commercial inputs and technological
outputs in diverse branches of industry (Archibugi, 1988). Previous
innovation investigations that have used IPRs have mainly used patents in
focused branches of industries. In Articles I, II and IV broader definitions of
IPRs have been applied and their inputs and outputs in all branches of
industries have been explored. The possible problems associated with
comparisons of innovation and R&D activities in different branches of
industry have been decreased, as far as possible, by following
recommendations in the OECD (2005) Oslo Manual and using broad
definitions of IPRs. It should be emphasised that both the strength and
weaknesses of this definition of innovation are based on its narrow and
highly focused scope.
The second definition of innovation follows West and Farr’s (1990) broad
definition of the term innovation, which was applied in Article IV.
According to this definition, innovation is understood as “the intentional
introduction and application within a role, group or organisation of ideas,
processes, products or procedures, new to the relevant unit of adoption,
designed to significantly benefit the individual, the group, organisation or
wider society”. West and Farr’s definition of innovation both widens the
perspective and is in line with the OECD (2005) Oslo Manual definition of
innovation, which emphasises the diversity of innovation, including
product-, process-, organizational- and market-innovations and wider
stakeholder influences of innovation. It should be noted that both the
strength and problems of this definition of innovation are based on its
broad and highly fragmented (subjective) view of innovation. In addition, in
Article III entrepreneurs defined the concept of innovation and raised
possible meanings of innovation in relation to their business development.