Creating Smart(er) Cities by Accelerating Innovation in Transport Small and Medium Sized Enterprises (SMEs): The Case of West Midlands Region

摘要

Small and Medium sized Enterprises (SMEs) at present employ 55% of the European workforce in transport and their essential role in the value chain will increase [1]. The rigid value chain of the transport sector is preventing innovation. Tier 2 SMEs generally find it difficult to interact with vehicle manufacturers as they tend to have short-term supply contracts to Tier 1 companies. They have no collective voice or influence at European level and the EU is not supporting innovation in these companies [2]. As part of a wider research project, this paper investigates this market failure at regional level and focuses on the opportunities for innovative and proactive transport SMEs. The main objective is to identify the innovation process of transport SMEs and the way to improve their capacity and capability to further develop and grow. Based on desk research of relevant literature and interviews with SMEs and Business Support organisations in the transport sector in the West Midlands region of England, this paper draws conclusions on the key future success factors that can boost transport innovation.