Innovation ecosystem for smart product: empirical quantification of its key dimensions in SMEs of 21 European countries

Abstract

This paper aims to quantify the innovation ecosystem model for allowing the development of smart products at the country level. In this regard, the research used an empirical approach to scale and validate the six dimensions of an innovation ecosystem model among the small and medium-sized enterprises of 21 European countries. The quantitative methods of panel data analysis and Pearson correlation tests between variables of the innovation ecosystem and smart products were considered to examine six research hypotheses. Three dimensions of the innovation ecosystem model, i.e., configuration, change, and capability, have enough effects to accelerate high levels of smart products in the small and medium-sized enterprises of European countries, supporting the external and internal economic partnerships of institutions and companies, cultural changes in functional status, and knowledge-based capabilities of technological skills in each ecosystem. In addition, hierarchical clustering analysis for the classification of the countries showed that some countries, e.g., the United Kingdom, Netherlands, Sweden, Switzerland, Germany, Denmark, France, and Norway, could support their powerful smart products for small and medium-sized enterprises at the national level due to their high mean innovation ecosystem values. Overall, the research can describe the managerial implications regarding the knowledge-based capabilities of the technological skills in each ecosystem to be utilized by managers and stakeholders in small and medium-sized enterprises.