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Innovation is not just an individual act of learning by a firm or entrepreneur, but anchored within a larger system that enables and draws on the innovation process. Hence there is need to study internal and external factors that influence technological innovation outputs of small and medium enterprises (SMEs). SMEs at four industrial estates in Nigeria were sampled for this study. Several internal factors such as firm size, turnover, age, ownership, and expenditure on innovation activities did not have significant relationships with innovation output, signifying they are not the factors promoting innovation levels. Quality of human resources and interactions with suppliers as an external factor within the national innovation system (NIS) both made significant impact on innovation. Innovative performance of the firms is mainly influenced by demand or market pull factors more than technology push sources. The study recommends increasing interaction and dynamism within the NIS; substantial investment to galvanize industrial and technological capabilities of the firms and their supply chains; and adequate supply of infrastructure and funds to SMEs.

While extant literature explores the influence of institutions on the national innovation system (NIS), most research has either focused on specific institutional aspects or treated institutions as a unified entity. This study aims to examine the effect of various institutional factors on a country’s NIS.

The conceptual model was empirically validated using regression analysis. The study sample comprised a total of 84 countries.

This study identifies and empirically validates a comprehensive set of institutional factors. It also highlights the significant institutional factors (including political stability, government effectiveness, ease of resolving insolvency and the rule of law) that can help improve a country’s NIS.

The research provides practical implications for organizations and policymakers seeking to understand and foster an innovative culture within the NIS. Policymakers are encouraged to develop a nurturing environment within the NIS by focusing on significant institutional factors. Organizations are encouraged to closely monitor developments in the NIS of a country to make informed strategic decisions at the business, corporate and international levels.

This study aims to analyze the inhibiting factors of small and medium enterprises (SMEs’) technology innovation, supporting institutions for SMEs technology innovation development, SMEs’ technology innovation development model and strategies for developing SMEs in technology innovation.

This is a mixed-method research project conducted through a survey of SMEs in Riau Province, Sumatera Indonesia (primarily in the districts of Siak, Kampar and Pelalawan) from April to July 2019. SMEs that have been operating for at least five years were chosen purposively as samples. Based on the requirement, there are 277 entities used in this study. A focus group discussion (FGD) was also conducted to formulate SME models and development strategies in technological innovation. In addition, in-depth interviews and observations were also carried out on technological innovations undertaken by respondents.

It was found that there are five inhibiting factors of SMEs’ technology innovation: government support, quality of human resources, funding of technological innovation, economic conditions and business partners. The biggest inhibiting factor remains to be the funding of technological innovation. Therefore SMEs provide independent technological innovation costs to develop technological innovations for business sustainability. Supporting institutions for developing SME technology innovation consist of government institutions, private institutions, financial institutions (banks) and nonbank financial institutions. To survive and excel amid competition, SMEs need to pay attention to technological innovation. The business strategy that needs to be done is to improve services to consumers and improve their attitude toward innovation in the implementation and development of SMEs’ businesses.

This research is limited to research on the inhibiting factors for SME technology innovation from the aspect of the production sector. This research has not studied various business fields in the trade, service and digital SME sectors. Future studies can reveal factors inhibiting SME technological innovation, except production aspects and various SME business fields. In addition, this study has not analyzed the cost of technological innovation provided by SMEs. Therefore, future studies could also reveal the large costs of technological innovation provided by SMEs.

This research investigates barriers hindering the SMEs’ technological innovations in Southeast Asia, including Indonesia as a maritime country. It also formulates strategies to reduce the barriers to SME’s technological innovation and contributes to the development of knowledge of technological innovations in SMEs. Moreover, this paper involves investigating government support from a nonfinancial aspect. To the best of the authors’ knowledge, this aspect has not been much discussed by studies on innovation at SMEs till now.

The paper examined the dimensions of innovation in small scale manufacturing firms with a view to understanding the interaction and relationship among product innovation, process innovation, organizational innovation, and marketing innovation. It further determines the relationship that exists between sales turnover and the four dimensions of innovation. Forty-six small manufacturing firms were sampled across the 4 major small scale Industrial Estates in Lagos State. The paper observed that these small firms engaged mainly in process innovation. The correlation analysis revealed a significant relationship between marketing and process innovation (r = 0.51; p<0.01) while there is no causality between product and process innovation (r = 0.31; p<0.05); product innovation and organizational innovation (r = 0.22; p<0.05); product innovation and marketing innovation (r = 0.11; p<0.05); and process and organizational innovation (r = 0.27; p<0.05) in these firms. The paper concludes that these firms are solely interested in upgrading and renewal of products, improving new methods of production, supply and distribution. The paper finally submitted that the observed trend is not unconnected with poor R&D initiative between small firms and research institutions, poor technological innovation capability of firms, and poor linkages/collaboration among stakeholder on new product development.