Innovation and SMEs: A Binom of Economic Growth - Case of Albania
Abstract
Businesses are constantly seeking new, innovative methods to operate, strengthen their position, and obtain a competitive advantage in the present environment. Innovation entails more than just a new concept. Innovation is regarded as the major driver of growth in SMEs and the assurance of long-term sustainability. Innovation improves SMEs' ability to respond to market changes and increase their performance. The degree to which small and medium-sized businesses incorporate innovation into their strategies typically determines their success and survival. Several ways can be employed to accomplish this goal. One method is to re-engineer the existing business models using innovation practices.
Through a thorough literature review, the primary goal of this study will be to examine innovation as a significant factor in the growth of SMEs, specifically its impact on their performance. Inferential statistics on innovation measures and key performance indicators will be interpreted as part of the analysis. In the case of Albania, the study includes a regression-type model that investigates the association between SMEs' performance and innovation. Using the built-in model, a positive relationship between innovation and performance is expected, implying that the commitment to the innovation metrics will increase SME performance and, as a result, economic growth.
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