An integrated model of innovation drivers for smaller software firms

• We study the innovation practice of smaller software firms in a regional cluster in England.
• We provide an integrated model of innovation drivers for smaller software firms.
• Key smaller firm innovation drivers are external knowledge leverage, leadership and team process.
• Software innovators adapt their own tools and methods rather than use specialized innovation tools.

High-technology innovation is essential for economic development in industrialized societies. However, innovation practice in smaller software companies has received little attention. We derive software innovation drivers and outputs from a fragmented literature and analyze their empirical relevance using qualitative data from 25 in-depth interviews with software executives in the Silicon Fen. Repeating patterns in the data set revealed through content analysis show that the most important innovation drivers for smaller software firms are external knowledge, leadership and team processes. Specialized innovation tools and techniques are hardly used. We develop a model of software innovation drivers, together with explorative theoretical propositions.