Innovation Process in small Software developing Companies : A Swedish perpective

Abstract: This thesis work develops a detailed understanding of the different innovation processes in four small software developing firms in Mjärdevi Science Park (MSP). The analysis of these complex processes is based on an open systems approach, which includes the technology cluster in Linköping as centre of software and hardware development in Sweden. Special attention hereby goes to MSP as the software developing centre of the cluster, and Linköping’s University as one of the most renowned Scandinavian universities in the field of informatics. We generally see that innovative companies have higher revenues than their non-innovative counterparts. Interesting is therefore the identification of aspects, which enable organizations to shape and foster their innovative capability in a socio-technical context. Previous research on the identification of patterns in innovation has focused on large multinationals with separate R&D departments. But how should small- sized firms deal with the ‘innovators dilemma’? How can they benefit from being situated in a Science Park? How do they manage innovation as a structured process? This thesis answers these questions by providing the reader with a catching insight in the innovation management of four software developers, who have created an innovative capability, as developers of radically new products in unexplored markets.