The impact of SMEs networks on innovation in the UK Creative Industries

Abstract

Research shows that SMEs enhance their innovation ability by engaging in networks. However, despite the wealth of research in the domain of SMEs, the question of how SMEs exploit network linkages to the benefit of their innovation efforts remains inconclusively answered. This paper examines the impact of external networks on the innovation activities of SMEs operating in the Creative Industries Sector. Owners and managers were interviewed in twenty-eight England-based SMEs. The findings suggest that personal networks are of major importance. Relationships with public bodies are seen as moderately beneficial. The prevalent obstacles for the SMEs in the CIS are funding and hiring of talented individuals. Customers have a strong impact on innovation in the creative SMEs. The large players in the CIS are important in securing path to the market for the creative outputs but they are not central to the creative processes and to the generation of innovation.