Organizations today are engaged in a global, ferocious and stagnant, but decreasing, competitive market. Virtually many products and services have become commoditized, with no company having real power over the market price of goods and services, and it seems that this will not change in the immediate future
Therefore it is necessary that organizations can compete, grow market share, or just stay there, being able to provide high standards of quality, product and service, and operating at lower costs than competitors which may eventually have products at lower prices.
In this environment Innovation presents itself as one of the best strategic tools to address this competitive situation. In particular technological innovation is clearly identified as a key strategic element in improving business competitiveness of small and medium enterprises (SMEs).
Innovation should not only be focused on product development. Ability to innovate can and should go further. Organizational and operational innovation is precisely the competitive advantage that can be maintained in a sustainable way for SMEs
The key factors for a successful innovation in SMEs are:
- Appropriate technological and commercial monitoring.
- Tight integration between departments or functional areas.
- Use of planning tools and project control.
- Market orientation.
- Continuous technical training of staff.
- Management commitment to developing innovative business.
- Dynamic and flexible structure.
- Connecting to networking and technological knowledge centers.
- Easy access to finance and public policy support for innovation.
