Abstract
This paper probes the nature and dimensions of technological innovations carried out by small engineering enterprises in Karnataka, India – at the industry as well as firm level. Industry level study revealed that small enterprises undertook innovations due to both internal and external factors but importantly, the technical education background of the entrepreneurs seemed to motivate them towards technological innovations. To achieve greater competitiveness, most of these enterprises were engaged in "incremental innovations" with self-efforts and achieved quality improvement, improved product designs, increased output, etc. Innovation made a significant contribution to output. But the firm level case study threw light on "radical innovations" achieved by a small enterprise with self-efforts, which developed new products periodically, entered the export market and grew in size over time.
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