SME 2.0: Roadmap towards Web 2.0-Based Open Innovation in SME-Networks – A Case Study Based Research Framework

Small- and medium sized enterprises (SMEs) are of high social and economic importance since they represent 99% of European enterprises. With regard to their restricted resources, SMEs are facing a limited capacity for innovation to compete with new challenges in a complex and dynamic competitive environment. Given this context, SMEs need to increasingly cooperate to generate innovations on an extended resource base. Our research project focuses on the aspect of open innovation in SME-networks enabled by Web 2.0 applications and referring to innovative solutions of non-competitive daily life problems. Examples are industrial safety, work-life balance issues or pollution control. The project raises the question whether the use of Web 2.0 applications can foster the exchange of creativity and innovative ideas within a network of SMEs and hence catalyze new forms of innovation processes among its participants. Using Web 2.0 applications within SMEs implies consequently breaking down innovation processes to employees’ level and thus systematically opening up a heterogeneous and broader knowledge base to idea generation. In this paper we address first steps on a roadmap towards Web 2.0-based open innovation processes within SME-networks. It presents a general framework for interaction activities leading to open innovation and recommends a regional marketplace as a viable, trust-building driver for further collaborative activities. These findings are based on field research within a specific SME-network in Rhineland-Palatinate Germany, the “WirtschaftsForum Neuwied e.V.”, which consists of roughly 100 heterogeneous SMEs employing about 8,000 workers.