Open Innovation in SMEs: prospects and challenges

Abstract

Newly evolved technologies and multi-faceted researches along the setting of entrepreneurship development, philosophy, context and business handling have been transformed from being traditional to innovative. Depending on the diversity and nature of the transformation, innovation has been shifted from closed to open paradigm. Ranging from micro to small or medium to corporate business houses are being immensely benefited by the innovation techniques, especially utilizing information and communication technologies (ICTs). However, the road to innovation, despite being seen or taken as a paradigm shift is not smooth and ready for many, particularly the small and medium enterprises who mainly deal with the clients at the outer peripheries of the social circle. Despite being a major economic contributor in many countries, SMEs suffer from various challenges, of inherited nature, culture and reasons beyond control. This paper synthesizes issues of opportunities and challenges for small and medium enterprises by carrying out a longitudinal study. Furthermore, the paper provides a few research hints for researchers and research institutions.