The Factors Hindering Innovation at Iranian Smes

Innovation is the key to the economic development in today’s knowledge driven economy. World markets increasingly demand knowledge-intensive production and innovation-based competition. Iran still remains largely a natural-resource-based economy. To become competitive in today’s market it needs urgent shift towards a more knowledge-based economy which requires strong innovation system. This study aims to investigate the factors hindering innovation process at Iranian SMEs by examining the systems responsible for innovation management and surveying 235 manufacturing SMEs in Iran. The goal of the study is to develop an innovation management framework for Iranian SMEs based on the survey results.