A Study on the Innovation in SMEs and the Identification of the Obstacles: The Case of Denizli

Abstract

The purpose of this study is, to determine the innovations of the SMEs’ innovative applications, to identify the internal and external factors which prevent businesses’ innovation practices in order to provide their relation and the importance of this relation. For the businesses in this study, the most significat internal innovation barrier to their innovation practices, is the meager funding for the innovation. This shows us that the SMEs participating in research do not engage enough investment for innovation. For SMEs participating in the study, the most important external innovation barrier; is the high level of state bureaucracy regarding all financial, legal, etc. procedures for the innovation. This study shows that easing bureaucratic procedures, providing financial facilities, would increase the innovation applications. On the other hand , a significant relationship in apositive way was observed between internal innovation applications and external innovation barriers. This result shows us internal innovation barriers and the external innovation barriers affect or trigger each other.