The impact of explorative and exploitative collaborations on SMEs innovative performance

Despite the importance of SMEs for innovation activity, questions remain concerning the determinants of their innovative performance and the role of different types of collaboration and partners. The present paper empirically analyzes the role played by different types of R&D collaborations in the persistence of SME innovative performance. We used a longitudinal database to identify all the Swedish SMEs that launched significant product innovations in the ICT market in the 1990-2019 period, in combination with collected data on the R&D collaborations established by these SMEs. Through several dynamic panel data regression models, we point out how SME innovative performance is significantly affected by R&D collaborations with large firms and universities. Crucially, we show how the impact of these collaborations differs depending on the nature of these relationships. In doing so, the present paper offers insights into the relationships between SMEs and universities, and open innovation strategies.