Meaning ● Sectoral Innovation Systems (SIS) represent interconnected firms, institutions, and policies specific to a particular industry, influencing the direction and speed of innovation. For SMBs, this means understanding their industry’s unique ecosystem. Growth depends on accessing resources, collaborating with other actors within the system, and adapting to evolving technological standards. Automation strategies, for example, might require partnering with specialized tech firms within the SIS, providing SMBs with tailored solutions not readily available otherwise. ● In implementation, SMBs must identify key stakeholders in their SIS, building relationships with universities, research institutions, and larger corporations to leverage external knowledge and resources. Additionally, policy support targeted at specific sectors can enable wider adoption of new technologies among SMBs. ● A well-functioning SIS can provide SMBs with competitive advantages through enhanced access to innovation funding, regulatory guidance, and collaborative opportunities. Implementing the right innovation strategy helps promote long-term sustainable scaling for the small to medium size business.
