Could open innovation methods improve the performance of SMEs?

Purpose of the article There is a growing evidence among innovation researchers and the broader innovation community that application of open innovation methods and techniques are beneficiary for all parties involved. The article presents the findings of a company survey that clearly demonstrates how profitable is for the companies and it pays off to keep looking for new collaboration opportunities and ways. Methodology/methods The objective of the research was to investigate the extent SMEs applying the open innovation model differ from the ones operating in the traditional closed model reflected by economic indicators. In order to test our hypotheses, we an interview guideline was designed to consult with senior managers of SMEs located in North-West Hungary. The consultation with the companies was carried out by interviewers in the first quarter of 2014. The database of 240 firms offered adequate inputs for research on the openness of SMEs operating in the region. Scientific aim International surveys and empirical research based on case studies highlight the fact that those SMEs can take the most advantage from open innovation that regularly collaborate with their clients, buyers and different higher education institutions. Our investigation focused particularly on SMEs and sought for evidence that not only small enterprises with cutting edge technologies can be considered innovative, but companies realizing innovation in traditional branches of industry as well. Findings Based on our investigation we can say that small size by itself does not mean any disadvantage if the organization has intensive collaboration and dialogs with its buyers, suppliers and it makes use of the services provided by different research institutes, universities and other specialized experts. Conclusions Our conclusions are pretty much in line with the growing number of publications that indicate it is worthwhile and profitable for the SMEs to use open innovation methods. This is verified by the higher turnover, exports and patenting activity of the SMEs actively involved in open innovation.