Process and outcomes of technological innovations in electronics industry SMEs of Bangalore: A case study approach

Abstract

Summary This paper describes the origin and process of technological innovations leading to the development and introduction of new products in the electronics industry of Bangalore, India. Market expansion, along with enterprise growth with reference to three SMEs, is discussed. This study concisely presents the instrumental role that entrepreneurs play in recognizing market opportunities, building crucial in‐house technological capabilities, supplementing it with appropriate external assistance, and establishing technological innovation processes. This includes process modifications to suit customer requirements and finally deliver innovations to the market. The innovation process is significantly marked by a built‐in mechanism for continuous customer interactions. Consequently, all the three SMEs have achieved successful product innovations, leading to their gradual growth over time—not only in terms of employment and investment, but more importantly in terms of sales turnover. Furthermore, inferences drawn from the cases lead to a proposed three‐stage theoretical construct of the process of SME innovation: starting‐up and stabilizing, building technological credibility, and the opening of new markets. The stages involve fulfilling design standards, pursuing incremental innovations, and ushering radical innovations.