Environmental determinants of open innovation in Dubai SMEs

• Government support through policy and infrastructure is an important determinant of innovation in Dubai SMEs.
• Market dynamics through active relationships with suppliers, and healthy competition are also important.
• Surprisingly, access to financial resources is not considered an important driver of innovation in the Dubai market.
• Nor are academic and industry collaborations.

This study examines a number of environmental determinants (government supported developments, financial resources, academic-industry collaborations and market dynamics) in supporting innovation in small and medium-sized enterprises in the emerging Dubai market in the United Arab Emirates. The results from a survey of 200 senior managers highlight the importance of government supported developments and market dynamics on innovation in these firms, although do not support the expected influence of financial resources and academic and industry collaborations. The implication is that innovation should be linked to the local economic development and supported by specific policies and programs.