Impel or impede? Revealing the effect of the integration into innovation ecosystems on the development of SMEs

Through a survey of 305 manufacturing SMEs in China, this paper examines the influence of integrating into innovation ecosystems on the development of SMEs. The results show that: (1) There is an inverted U-shaped relationship between the integration into innovation ecosystems and the innovation capability of SMEs. Moreover, with the increase of the population richness of innovation ecosystem, the inverted U-shaped curve will become steeper and the curve vertex will move to the left. (2) The breadth of the integration into innovation ecosystems is positively correlated with the dynamic capability of SMEs, while the depth of the integration into innovation ecosystem is negatively correlated with the dynamic capability of SMEs. In addition, the population richness of innovation ecosystem will strengthen the positive effect of the integration breadth and weaken the negative effect of the integration depth. This paper not only deepens the academic understanding of the relationship between innovation ecosystems and enterprises, but also provides practical guidance for SMEs to achieve development via integrating into innovation ecosystems.