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

Abstract:

Global competition requires usage of local and global research and innovation networks; transfer of innovative ability to new products, services and processes along with timely marketing of these. The 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 highlighting policies and actions to promote 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 the Organized Industrial Zone (OIZ) in Istanbul. The pilot study indicates that the SMEs that have better ICT adoption capabilities have higher innovation utilization rates and 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.