The Impact of Cooperation among Small and Medium-Sized Enterprises on Their Innovation capabilities
The Impact of Cooperation among Small and Medium-Sized Enterprises on Their Innovation capabilities

Summary/Abstract: Although in recent years several measures, government activities, projects, and increased R&D resources have motivated and assisted companies in their innovation activities, the aggregated innovation activity indicators of Hungary (summary innovation index – SII, innovation union scoreboard index – the index-IUS) and the statistics still show a strong fullback compared to the member states of the European Union. This is especially true regarding the region of Northern Hungary, where innovation would be essential for the future and competitiveness of small and medium enterprises. Research aims. The primary aim of the research is to examine whether there is cooperation between companies and stakeholders. To observe what is the frequency and depth of the cooperation between the studied companies and the stakeholders. In general, is there a relationship between cooperation and innovation? What kind of sources of innovation are preferred by the surveyed companies? Where does the capital for innovation come from? Methodology. The primary research examines the innovation activities of small and medium-sized enterprises and the related forms of cooperation. The research database was provided by a questionnaire survey conducted by managers of small and medium-sized enterprises operating in Northern Hungary, which was carried out in 2015. Key findings. This research showed that there is a significant correlation between the level of cooperation and innovation. It shows which are those innovation activities (market pull and demand push) among the studied companies that are preferred; and how the degree of willingness to cooperate impacts the way of innovation. The research reflects the openness to innovation of the leaders of the small and medium-sized enterprises and the research showed that the most preferred form of innovation within the market is pull innovation. However, the company leaders know that the resource intensity of innovation is very high and they need external resources, which they do not prefer. The use of bank loans to the innovation is low (only 27% in 2015 among Hungarian SMEs). The companies prefer the development support from the state or local governments.

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