In the absence of an official database, we relied on the databases of SME associations
like ‘Karnataka Small Scale Industries Association’, ‘Bangalore and Peenya Industries
Association’, among others. Accordingly, with the validated questionnaire, we
approached about 150 to 200 SMEs in each of the sectors and gathered primary data from
72 auto component SMEs, 67 electronic SMEs and 75 machine tool SMEs. Only those
SMEs which have come up prior to 2001/2 were covered by the study. The quantitative
data were gathered for a period of five years from 2001/2 to 2005/6. Data collection was
done during January–December 2007. While the first objective was analysed
descriptively making use of frequency tables for innovative SMEs, the second objective
was analysed in terms of percentage growth of economic variables for both innovative
and non-innovative SMEs. The third objective was analysed for innovative SMEs using
correlation analysis, analysis of variance (ANOVA), and regression analysis.