Page 24 - Gričar, Sergej, Barbara Rodica and Štefan Bojnec, 2016. Sandwich Management. Koper: University of Primorska Press
P. 24
Sandwich Management
sufficient resources should also be invested in patterns that ensure interme-
diate and long-term growth; provide defenses against possible government,
labor, competitive, or activist challenges; and generate needed organiza-
tional, technical, and external relations flexibilities to handle unforeseen
opportunities or threats.
On average in the EU28, around threequarters of service value added
are generated by firms with less than 250 employees. Because of the hetero-
geneity of service industrie, it is difficult to generalise too much about their
innovative process. Some services are more innovative than others. As they
find out in European Cluster Observatory, clustering in services is high-
ly correlated with GDP per capita (clusters in business services, financial
services and information technology). External sourcing of new knowl-
edge is important for all and especially for small enterprises. An impor-
24 tant element in supporting services sector innovation is cluster formation
which foster knowledge transfers and spillovers. Problem with assessing
innovation in services, especially in small enterprises is, that it includes a
very heterogenous group of activities. Knowledge Intensive Services (KIS)
are the services with high levels of technological opportunity which on the
Eurostat rank stand at the core of, such as computer services, telecommu-
nications, transport and R&D and engineering services (Uppenberg and
Strauss 2010). Knowledge-intensive business services (KIBS) are able to
provide advanced technological knowledge directly to other industrial sec-
tors, and indirectly to the whole economy. The knowledge generated by the
KIBS stems from interactive learning with a diverse set of economic actors,
and the same actors can benefit collectively of such knowledge. Authors
of European Cluster Observatory research observe that it is evident that
wealthy regions typically support disproportionally high concentrations of
KIBS employment (European Cluster Observatory 2009).
The results of the study of Bhaskaran (2006) indicate that incremen-
tal innovation offers substantial competitive advantages to small and medi-
um-size enterprises. The result shows that incremental innovations can be
adopted and operationalized rapidly by entrepreneurs with different cul-
tural backgrounds and skills, and that small and medium-size enterprise
that focus on sales and marketing innovations are profitable and are able to
compete successfully with large businesses.
The Innovation Paradigm
The last century was dominated by the paradigm of closed innovations.
Traditional business strategy is guided with defensible positions against
the forces of competition and power in the value chain, implying the im-
sufficient resources should also be invested in patterns that ensure interme-
diate and long-term growth; provide defenses against possible government,
labor, competitive, or activist challenges; and generate needed organiza-
tional, technical, and external relations flexibilities to handle unforeseen
opportunities or threats.
On average in the EU28, around threequarters of service value added
are generated by firms with less than 250 employees. Because of the hetero-
geneity of service industrie, it is difficult to generalise too much about their
innovative process. Some services are more innovative than others. As they
find out in European Cluster Observatory, clustering in services is high-
ly correlated with GDP per capita (clusters in business services, financial
services and information technology). External sourcing of new knowl-
edge is important for all and especially for small enterprises. An impor-
24 tant element in supporting services sector innovation is cluster formation
which foster knowledge transfers and spillovers. Problem with assessing
innovation in services, especially in small enterprises is, that it includes a
very heterogenous group of activities. Knowledge Intensive Services (KIS)
are the services with high levels of technological opportunity which on the
Eurostat rank stand at the core of, such as computer services, telecommu-
nications, transport and R&D and engineering services (Uppenberg and
Strauss 2010). Knowledge-intensive business services (KIBS) are able to
provide advanced technological knowledge directly to other industrial sec-
tors, and indirectly to the whole economy. The knowledge generated by the
KIBS stems from interactive learning with a diverse set of economic actors,
and the same actors can benefit collectively of such knowledge. Authors
of European Cluster Observatory research observe that it is evident that
wealthy regions typically support disproportionally high concentrations of
KIBS employment (European Cluster Observatory 2009).
The results of the study of Bhaskaran (2006) indicate that incremen-
tal innovation offers substantial competitive advantages to small and medi-
um-size enterprises. The result shows that incremental innovations can be
adopted and operationalized rapidly by entrepreneurs with different cul-
tural backgrounds and skills, and that small and medium-size enterprise
that focus on sales and marketing innovations are profitable and are able to
compete successfully with large businesses.
The Innovation Paradigm
The last century was dominated by the paradigm of closed innovations.
Traditional business strategy is guided with defensible positions against
the forces of competition and power in the value chain, implying the im-
