Evolution, innovation and learning: evidence from case studies

Abstract

Whilst considerable work has addressed the characteristics of innovative small firms and their aggregate contribution to economic growth and development, the internal processes of learning and innovation have remained relatively neglected. Drawing upon evolutionary ideas within economics and the broader social sciences, this paper begins the development of an appropriate process theory of learning within innovative small firms. The theory conceptualizes; the skills of the firm in terms of organizational routines. These routines are subject to self–reinforcing, path–dependent development which result in the tendency towards lock–in within product innovative small firms. Amongst other things suggested by the paper are the need to augment the knowledge bases of technically driven firms and the need for training policy differentiation between product innovative small firms and their more mainstream counterparts.