How internal and external factors influence the dynamics of SME technology collaboration networks over time

This paper presents a framework to assess the effects of technology collaboration networks (TCNs) on the innovation performance of small and medium-sized enterprises (SME). It includes three factors that affect firm dynamics and could influence the success of the TCN: the macroeconomic cycle (macro-level), the industry life cycle (industry-level) and the age of the firm (firm-level). Previous papers have focused on factors at one specific level, mainly the firm level, but have not looked at these all together and have also failed to take into account how they evolve gradually over time. This study closes this gap using a panel of 44,885 observations for SMEs for the period 2003-2013. The findings confirm the importance of the inclusion of these factors at the macroeconomic, industry and firm level since they influence the TCN and the innovation performance relationship. The implications for managers and policy makers are discussed.