Innovation, Capabilities and Performance of Canadian SMEs in High Tech Industries

Abstract

The nature of high-tech industries necessitates a continuous improvement and innovation. Enterprises operating in these industries need to develop and build dynamic capabilities to be successful. The paper therefore argues that successful performance of small and medium enterprises in high tech industries is determined by its innovative ability, which in turn depends on its dynamic capabilities. The paper aims at examining the different dimension of capabilities and learning processes, which differentiate innovators from non-innovators and small firms from medium & large. Further, it explores the relationship between innovation, dynamic capabilities and performance. The result of the study shows that there are different sets of capabilities and learning processes, which characterize innovators and small firms. However, impact of innovation on economic performance is not clear.