Assessing the Influence of Science and Research Institutions on Innovation in Austrian Service SMEs

Abstract

This article delves into fundamental aspects related to Austrian small & medium-sized service enterprises, and their impacts on the innovation capabilities of these entities. The study is based on Austrian small & medium-sized service enterprises in the service sector, focusing specifically on the intensity and effectiveness of their collaboration with business environment institutions in driving innovation. The research was guided by the objective of assessing how business environment institutions influence the innovation processes within Austrian small & medium-sized service enterprises. To explore this, a research hypothesis was formulated, suggesting that universities, as key business environment institutions, have the most significant positive impact on the innovation performance of micro, small, and medium-sized service enterprises. The research employed a questionnaire-based survey method to collect data from the participating small & medium-sized service enterprises, providing a comprehensive overview of their interactions with various business environment institutions. The results revealed a generally low level of cooperation between Austrian small & medium-sized service enterprises and business environment institutions, with such collaborations often being sporadic or occurring on an ad hoc basis rather than as part of a sustained effort. Most business environment institutions were found to have limited influence on the innovation activities of these enterprises. However, the study identified a crucial exception in the form of cooperation with institutions involved in science, research, and development. These specific collaborations were shown to have a notably positive effect on enhancing the innovation levels of the small & medium-sized service enterprises surveyed. This article underscores the critical role that science and research-focused institutions play in fostering innovation among service-oriented small & medium-sized service enterprises in Austria. It also highlights the need for more consistent and robust partnerships between small & medium-sized service enterprises and business environment institutions, particularly with universities and research institutions. The findings provide essential insights for policymakers aiming to strengthen innovation within Austria’s service sector, emphasizing the importance of targeted support mechanisms to enhance small & medium-sized service enterprises competitiveness and innovation.