Analysis of innovation in SMEs using an innovative capability-based non-linear model: A study in the province of Seville (Spain)

This article analyzes organizational characteristics associated with innovative outcomes of SMEs in local economies with a low level of technological and R&D activities, where the indicators generally used to gauge technological innovation do not offer sufficient data. For the study of innovation in such economies, we propose a conceptual model based on innovative capability which also includes explanatory variables of environment and other contextual factors of the firms. Through a process of filtering spurious variables and incorporating quadratic components, we have varied the original linear structure to form a quadratic model with greater explanatory capacity and better results. The resulting quadratic model has undergone various contrasts of hypotheses, thus demonstrating the effectiveness of the model as a whole and of its basic components, as well as the importance of the main explanatory variables. Finally, the model has also proven to be valid in all sectors.

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► An Innovative Capability-Based Non-linear Model is developed for SMEs in less developed regions.
► The hypotheses formulated regarding the complete model and innovative capability are accepted.
► Behavior of a wide set of significant linear and non-linear models is studied.
► The quadratic model maintains its explanatory capacity in all sectors.
► Relevant conclusions can be made for management and innovation policy.