Abstract:

This article reports the results of an online survey conducted among medium sized companies in Germany (German Mittelstand) in order to gain insights regarding the focus of their innovative activities and how innovations contribute to their business models. Main research question to be answered was if firms could be identified to operate either in an innovation economy or an industrial economy. Participating companies were also asked to provide input about the role innovations play in their strategic approach.

The results of the study indicate that none of the two approaches seem to be present in its pure form in German Mittelstand. Reported behaviour indicate that enterprises apply principles of both worlds quite individually. The results further suggest that German Mittelstand companies focus on traditional industrial economy approaches (based upon internal core competencies) which they enrich with elements of the new innovation economy. At least as far as the German Mittelstand is concerned, industrial and innovation economy seem to be didactical concepts rather than business realities.