Effects of SME collaboration on R&D in the service sector in open innovation

This study analyses the effects of four types of collaborative activities on the R&D performance of service SMEs in the context of open innovation: in-house R&D (non-collaboration), technology acquisition, R&D collaboration, and networking. For this, the study employs data envelopment analysis, a power tool that uses multiple inputs and outputs to measure the relative efficiency of collaborative activities of service SMEs for R&D. The results indicate that technology acquisition is the most efficient type of collaboration for R&D of service SMEs. More specifically in-house R&D, technology acquisition, and R&D collaboration are positively related to product/service innovation, patenting activity, and process innovation, respectively. However, networking is not significantly related to any three types of R&D performance. In addition, the service SMEs' strategic focus did not match their strategic purposes, suggesting a need for adjusting their collaborative activities. The results have important implications for managers and policy-makers interested in facilitating open innovation in service SMEs through various collaborative activities.