Innovation capabilities in small-medium autocomponents: evidence from Italy

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Small-medium firms represent more than 90% of Italian firms, 50% of Italian production and two thirds of employment and they need support in innovation processes especially in known technology. The small-medium firm, in fact, operates chiefly in medium to low technology sectors, but cannot for this reason reject innovation. Suppliers are often too small to make the necessary investments in training, computer systems, research and development to make an effective partnership with final producers. Within this scenario the behaviour of the small-medium car supplier is quite different, vertical disintegration, reorganisation of the supply base, globalisation and the development of buyer-supplier relationships have undoubtedly changed the role of suppliers in the carmaker’s strategies. © 2001 Inderscience Enterprises Ltd.