Barriers to innovation for SMEs in a small less developed country (Cyprus)

The present research, conducted in Cyprus, a small less developed country, concentrates on the barriers approach to innovation. The importance of barriers, as perceived by the firms' owners/managers was, rather surprisingly, not statistically correlated either to innovativeness, economic performance or the extent of the horizontal networking. The study of barriers offers, nevertheless, some interesting clues to the innovation practice in small less developed countries. Some similarities with barriers in industrialized countries (e.g. in supply of finance and skilled labour) were found, but many differences as well, as expected from the peculiar environment of a less technologically developed country. The role of Government policies is of particular importance.