Identification of Innovation Capabilities for Micro and Small Enterprises in Morelos, Mexico

Innovation is usually associated with the use of new technology or with important research and development departments, leaving micro and small enterprises (MSE) lacking. Our research shows that MSE can find success by doing things differently, better, quicker and more cost efficiently. Unfortunately, the innovation level of MSEs is hard to evaluate because most innovation models have been developed for medium and large enterprises. This paper's main objective is to determine indicators that can efficiently measure innovation in MSE in Morelos, Mexico dedicated to service and commerce activities. Three innovation models were analyzed: “Innovating for the next three billion” report by Ernst & Young, “Measurement of basic processes and innovation enabling” and “The Innovation Kite Model”. From this analysis, and after the identification of the characteristics and needs presented by the Mexican commerce and service MSE, we stablished 12 innovation capabilities to measure innovation levels