Given this, it is appropriate to understand the dimensions of SME innovations. In general,
SME innovations may be product focused or process focused or both. A higher
proportion of SMEs in auto and electronic sectors have undertaken both product and
process focused innovations whereas the majority of machine tool SMEs have undertaken
process-based innovations (Table 3). Product focused innovations comprised the
introduction of new products and/or the improvement of existing products through
changing product designs and dimensions or quality improvement to suit customer
requirements. Process-based innovations involved the introduction of new process
technology for existing products, adoption of cost reduction techniques, etc.