Technology Transfer: How SMEs Build Relationships to Advance Open Innovation

Abstract

This study reviews small and medium enterprises’ (SMEs) ability to avail themselves of technology transfer through the theoretical lens of open innovation. SMEs have shown to be the greatest source of job growth in both developed and developing countries. However, to remain competitive and become sustainable, SMEs in today’s marketplace need to innovate. Technology transfer can be an advantageous tool in assisting SMEs in their need to innovate. An effective strategy for SMEs to obtain technology transfer is to partner with competitors, suppliers, customers, universities, and government-sponsored research and development programs. This study offers a literature review of peer-reviewed works regarding the impact technology transfer has on SMEs and what barriers they encounter to obtaining technology transfer. This study concluded that there are attributes such as building personal relationships and communication, which allow SMEs to overcome these barriers and successfully partake in technology transfer. This paper advances the study of the theory of open innovation within SMEs by providing greater insight into how to create environments that foster technology transfer. Practitioners will gain an understanding of the barriers which inhibit technology transfer and the attributes required to overcome these barriers.