The innovativeness and growth of rural SMEs in the 1990s

The paper summarizes the results of a study of innovation in rural small and medium sized enterprises (SMEs) in England over the 1991–96 period. It is based on a survey of 330 firms drawn from 16 sectors and makes a comparison between similar SMEs in remote and accessible rural areas. Using a multi-dimensional index of innovation, relatively little overall difference is found in the level of innovation between SMEs in the different areas. A remote rural location is shown to influence innovation in different aspects of the business in different ways. The most innovative firms are shown to be those that have achieved the fastest growth and best employment creation during the 1990s.