Changing the Capital: Innovation in London’s Small Firms

Abstract

A considerable body of literature has emerged in recent years that has documented the increasing importance of innovative practices in small business firms within the United Kingdom. Much of this literature has developed in response to reports that UK firms were underperforming in the area of innovative practices in comparison to firms in other countries. The present paper asserts that an inextricable link exists between innovation and marketing, particularly in the field of new product development, and seeks to generate a clearer picture of the characteristics of both innovative owner‐managers and innovative businesses. On the basis of data drawn from a sample of 233 small and medium‐sized businesses in greater London, archetypes of innovative entrepreneurs and businesses are developed. The typical innovative business owner is shown to be young to middle‐aged and is willing to take risks and embrace new technologies. The typical innovative business is in the start‐up stage of development and is in the possession of a current business plan and markeing plan. The implications of these archetypes are discussed, as are concerns regarding how best to measure innovation and to evaluate the role of innovation in relation to small businesses.

Citation

Stokes, D. and James, M. (2006), "Changing the Capital: Innovation in London’s Small Firms", Journal of Research in Marketing and Entrepreneurship, Vol. 8 No. 1, pp. 95-106. https://doi.org/10.1108/14715200680001345