Measuring technological innovation among small and medium-sized enterprises in Malaysia's manufacturing sector : towards a proposed framework

Abstract

Nowadays, the relationship between innovation and Small and Medium-sized Enterprises (SMEs) technological capabilities is widely acknowledged. Technological innovation has been seen as a key tool for SMEs sustainability growth and in the meantime, increasing their level of competitiveness to meet the unmet demands. In addition, the vast majority of Malaysian enterprises are SMEs and they are the backbone of Malaysia's economy. That's why we're right to say that any effort which aims to increase our understanding and solving problems pertaining to the technological innovation activities in our SMEs will eventually contribute to the overall performance of the nation's economy. This paper attempts to provide an in depth understanding of the nature of technological innovation process as advanced by innovation systems scholars. Some of the key implications of systemic approaches of innovation studies to the measurement of innovation activities at the firm's level will be discussed. Based on the three building blocks of Sectoral Innovation Systems, i.e. knowledge, technological domain and sectoral boundaries; actors and networks; and institutions, this paper strongly suggests that the technological innovation measurement framework in the firm's level cannot merely depend on quantitative variables, but has to take into account other qualitative diverse phenomena.