Given the above, this paper attempts to understand issues such as what factors drive
SMEs to innovate, what is the nature of SME innovations, what are the achievements of
SME innovations, and what are the outcomes of these achievements. Overall, this paper
attempts to address the question: does SME innovation facilitate the growth of firm size?
This question has been probed in the context of SMEs in auto components, electronics,
and machine tool sectors in the city of Bangalore, the only global hub of technological
innovation in South Asia and the highest ranked global hub in the entire Asia (UNDP
2001).