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 Innovation in Small Businesses:Drivers of Change and Value Use
by
C J Isom, Ceteris, Inc.David R. Jarczyk, Ceteris, Inc.
forUnder contract no.SBAHQ07-Q-0012 Release Date:March 2009
This report was developed under a contract with the Small Business Administration, Office of Advocacy, and contains information and analysis that was reviewed and edited by officials of the Office of Advocacy. However, the final conclusions of the report do not necessarily reflect the views of the Office of Advocacy.
 
 
Under contract no. SBAHQ-07-M-0409Release Date:March 2009
This report was developed under a contract with the Small Business Administration, Office of Advocacy, and contains information and analysis that was reviewed and edited by officials of the Office of Advocacy. However, the final conclusions of the report do not necessarily reflect the views of the Office of Advocacy.
Innovation in Small Businesses:Drivers of Change and Value Use
by
C J Isom, Ceteris, Inc.David R. Jarczyk, Ceteris, Inc.
for
 
 
Ceteris, Inc. Page 1
Innovation in Small Businesses:Drivers of Change and Value
C J Isom, Ceteris, Inc.David R. Jarczyk, Ceteris, Inc.
Abstract
This paper investigates various drivers of innovation within small businesses, as well as the rolethat innovation plays in creating value in small businesses. The analysis suggests that additions inemployee headcount increase innovation while growth in sales does not increase innovation. Theanalysis also finds that increases in research and development (“R&D”) expenditures enhancesmall business value in certain industries, but not uniformly and not in all the industriesinvestigated. Finally, the paper finds that the number of patents owned by a small business is not agood indicator of a firm’s value.
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