Factors affecting innovation in small and medium scale enterprises

In the present study, attempt has been made to investigate factors affecting the innovation in small and medium enterprises. In that regard, with identifying factors affecting technological innovation, right decision can be made to improve innovation in small and medium enterprises. For this purpose, after reviewing the literature, the factors affecting the development of technological innovation were categorized in two categories: internal factors and environmental factors. The results of this study indicates that in internal factors, human capital, system performance evaluation, corporate strategy, internal research and development, organizational culture, knowledge management and in environmental factors, strong and expertise clusters, collaboration with customers and suppliers, contacts with universities and research centers, science and technology parks, risk financing institutions have most impact on technological innovation in small .and medium enterprises.