ICT Capability and Innovation Utilization in Turkish SMEs: The Case of Machinery Industry

Arzu Tektas, Emine Nur Gunay, Abdulmecit Karatas and Asli D. Helvacioglu Kuyucu

Bogazici University, Istanbul, Turkey

Abstract

Global competition requires usage of local and global research and innovation networks; transfer of innovative ability to new products, services and processes. Large scale companies have the ability to cope with the dynamics of the fierce global competition whereas, SMEs (small and medium sized enterprises) most of the time face challenges in the process of adopting and utilizing innovation. Information and communication technologies (ICT) adoption capacity provides an initial step towards innovation utilization among SMEs, facilitates improving innovative capacities by supporting R&D investments and paves the way for new product and technology generation. In the light of the recent tendencies that highlight policies and actions promoting the innovative capacity of the manufacturing sector, this pilot study aims to measure the innovation awareness and utilization levels of a sample of SMEs located in an Organized Industrial Zone (OIZ) in Istanbul. The pilot study indicates that the SMEs with higher ICT adoption capabilities have higher innovation utilization rates. These SMEs also benefit from increasing exports and technologically new or significantly improved goods and services. Although the findings can not be generalized, they can also shed light on the existing positive correlation between utilization levels of different innovation types.

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