Kleine und mittlere Unternehmen mit Besonderheiten? – Beiträge zur Mittelstandsforschung an den Beispielen von Innovation und Konjunktur

Abstract

This doctoral thesis is concerned with research into small and medium enterprises (SMEs). It consists of four essays on the specific roles of smaller firms in the fields of innovation and the business cycle. The first three contributions examine innovation protection practices in SMEs, with a specific focus on the role of intellectual property rights (IPRs). The fourth deals with a hypothesis according to which SMEs stabilize economy-wide output and employment over the business cycle. In each case, a particular emphasis is placed on the policy implications of the results. The first paper analyses the relationship between the size of innovative firms and their use of different appropriation methods. It is shown that, in absolute terms, smaller firms utilize IPRs and informal protection mechanisms to a much lesser extent on average than larger firms. However, they are relatively more likely to prefer informal mechanisms such as secrecy or lead time rather than IPRs to protect their innovation results from imitation. To explain these empirical findings, the paper discusses possible particularities in the appropriability of SME innovations. The second paper identifies various modes of appropriability in the small enterprise sector. It is again shown that for many innovative small firms the key question is not whether to use IPRs or not, but whether to protect their innovations from imitation at all. Furthermore, formal and informal innovation protection mechanisms should not be seen as mutually exclusive, since several can be employed jointly. Yet, a number of small firms use complexity of design as a substitute for patent protection. The relevance of each appropriation mode depends on such factors as the degree of innovativeness, the type of innovator and the general market environment, which implies that the relevance of IPRs is limited to specific business contexts. Furthermore, regarding firm performance as measured by innovation effects, some evidence has been found that choosing both IPR- and non-IPR-oriented appropriation strategies can prove to be effective in achieving company goals. The third paper is concerned with the explanatory determinants of single innovation protection mechanisms. A number of hypotheses are tested regarding the perceived importance by SMEs of formal and informal methods. In several ways, the results provide a better understanding of the appropriation strategies adopted by smaller firms. In more general terms, the study also adds to previous literature in taking a knowledge-based view. Most notably in this regard, a staff-related appropriation strategy (i.e. the long-term retention of qualified personnel) is found to be essential for many SMEs because of their more informal mode of learning and innovation characterized by experience-based know-how with strong tacit elements. The fourth paper investigates whether the German crafts sector, which is traditionally dominated by SMEs, acts as a potential stabilizer over the economy-wide business cycle. Regarding output indicators, the results imply that business cycle fluctuations do not necessarily have smaller effects on craft enterprises than on other firms. Important prerequisites in support of such a phenomenon are found to be the below-average share of craft enterprises with an export-orientation and stable domestic demand conditions. With respect to employment, however, stronger evidence in favour of a stabilizing behaviour of craft enterprises emerged through the paper. This is because employment responses to business cycle fluctuations are found to be less pronounced in the majority of the German crafts sector, compared with the economy as a whole.