Impact of digitalization on technological innovations in small and medium-sized enterprises (SMEs)

This study explores the impact of digitalization on technological (product and process) innovations in German small medium-sized enterprises (SMEs). In particular, three forms are considered – production logistics, digital value chains, big data analytics. Empirical analysis utilizes Mannheim Innovation Panel (MIP) dataset SMEs operating manufacturing service sectors. A binary probit model is separately estimated for micro, firms to test if theoretically assumed positive innovation effects occur different size. findings confirm that activities heterogenous among SMEs. Furthermore, modest depend form a type innovation. The also moderating effect internal R&D activities. suggest engagement weakness digitalization. More specifically, product process absent those conduct intramural R&D, while non-R&D SMEs, this positive. Based these findings, offers some theoretical policy implications.