Managing Technological Innovation in Large Complex Firms: The Contribution of Human Resource Management

Large firms have frequently been criticized for their lack of innovativeness, while smaller entrepreneurial firms have been hailed as paragons of innovativeness in such sectors as electronics, biotechnology, software, and services. One should not, however, jump to the conclusion that encouraging small firms (via venture capital, tax exemptions, increased mobility of managers and researchers, and more supportive networks) is the only answer to the lagging innovativeness of European industry. It would be a mistake to conclude that small firms have the edge on larger firms when it comes to innovation.1