Developing a Framework for Knowledge Creation, Dissemination and Utilisation for SMEs : A Case Study of Biotechnology

The realisation that fast growing SMEs are major contributors to economic prosperity has seen these firms being increasingly attributed with a more central role in the development of wealth, innovation, employment and national competitiveness. Spatial proximity often positively affects knowledge spillovers from firms and research organisations, reinforcing the asymmetric economic geography of prosperity and accomplishment (Cooke et al, 2005). Moreover, the multi-faceted nature of innovation processes highlighted by Leyesdorff (2000) suggests this should involve the examination of wide-ranging relationships (e.g. with other firms, government agencies, universities). Relating this to geographical aspects in particular, has been the identification of regional systems of innovation as extensions of national systems (Cooke and Morgan, 1994, Morgan, 1997, Howells, 2002, Baptista and Swann, 1998). Whilst national systems of innovation focus on the central role that knowledge and innovation play in determining productivity and growth (Lundvall, 1992, Nelson, 1992), regional factors help determine the extent of individual and organisational learning, technology transfer, innovation and business performance that subsequently occurs within individual regions (Oughton et al, 2002, Howells, 2002, Asheim and Gertler, 2005).