Small Firm's Innovation in Two Technological Settings

This paper explores the relationships between technological acquisition strategies of small firms and innovation in the Korean Electronics industry. Its thesis is that small firms' technology strategies and their effects on the rate of innovation differ according to the new and traditional technology settings. A primary finding of this study is that in-house R & D and technical linkages with buyers and suppliers have stronger effects on the radical innovation in the new technology setting rather than in the traditional technology setting. The findings of the study provides insight for interpreting inconsistent results of recent research for the importance of external linkages to innovation. They also suggest some implications of small firms' strategies and public policies for accelerating technological innovation.