Innovation knowledge sourcing from abroad: case technical services

The evolution of international economy has shaped the societal structures increasingly international that on the other hand influences innovation activities, making them all the time more exposed to knowledge generated abroad. Access to international knowledge sources and absorption of this knowledge have become crucial factors for companies to develop successful innovations in today's global environment. Innovation processes have opened in many ways (e.g. OECD, 2008), but little is known where and how companies, especially the SMEs, source foreign knowledge and know-how critical to companies' innovation production. The present study aims at casting light on this phenomenon by investigating the cross-border innovation knowledge sourcing in the small technical service company context. In this study innovation knowledge is understood as knowledge specifically related to innovation development, i.e. innovation process. The knowledge sourcing is approached through analysing various cross-border innovation partnership forms, i.e. the knowledge transfer mechanisms. The data is obtained via survey, which was distributed to Finnish innovative SMEs in order to obtain information on internationalisation of innovation activities. The first results indicate that in general SMEs already having some international operations source innovation knowledge more extensively than do companies who have not yet engaged in international operations. This applies also to technical service companies who are also in favour of less investment intensive co-operation forms, e.g. strategic partnerships, for transferring innovation knowledge transfer rather than for instance establishing investment intensive joint ventures. In addition, finding a competent partner and a worry of leaking core competency are seen as major hindrances in expanding cross-border innovation knowledge sourcing activities