EIM Business & Policy Research
This paper focuses on the relation between innovation and the international involvement of Small and Medium-sized Enterprises (SMEs), taking into account export as well as import activities of firms. The analysis is based on a sample of more than 1.800 Dutch SMEs using regression analysis. First, a positive impact is found for innovative investments on international involvement. The results of the analysis also suggest that there is a significant positive effect of several innovative realizations or practices on international involvement. More specifically, the results indicate that product innovations, strategic attention for innovation and inter-firm cooperation are positively related to export behavior and export intensity. The results also indicate that product innovations, process innovations and supplier-driven innovations are positively related to import behavior.