Strategical Behaviour and Product Development within Italian Smes

The industrial structure of many European countries is dominated by Small and Medium Enterprises (SMEs). Although SMEs consider the new product development process fundamental for success in the global market, the level of formalization of the innovation process is very low (Slywotzky [1]). The aim of this paper is to analyze in-depth a sample of SMEs located in a highly industrialized Italian region (Piedmont), the strategy used both for new product development, and for incremental innovation. The methodology is a longitudinal study, which provides a close-up view of the adoption of these non-structured innovation patterns (LeonardBarton [2]; Langley [3]). Although the SMEs located in this area are specialized rather than diversified in their technological competencies and product range, they lack information about the financial facilities available to the innovation process and marketing capabilities. These generate two effects: 1) the SMEs cannot cope with the R & D expenditures for new products; 2) they cannot fully take advantage from their innovation process. This research aims to offer some useful considerations to the European policy makers and managers in managing new product development and innovation within SMEs.