NFIB

Small Businesses Are Top Innovators, Study Finds
03/04/2003

Small businesses are not only more productive than big businesses, but they are also more technologically innovative, a recent study released by the Office of Advocacy of the Small Business Administration (SBA) has reported.

"Small Serial Innovators: The Small Firm Contribution to Technical Change" found that highly cited patents, which represent economically and technically important inventions, were held by more small firms than large. Patents held by small businesses were cited in subsequent patent applications 28 percent more often than those of larger businesses and were twice as likely to be among the 1 percent of most cited patents.

"This report shows how important small business is to innovation in America," Chief Counsel for Advocacy Thomas M. Sullivan said in a statement. "ItÆs clear that small innovative firms with multiple inventions and patents are vitally important in newer and science-intensive technologies. Their importance means that President Bush is right on target by focusing his economic growth package on small business."