Innovation and SME Development: Indonesian Experience in Uzbekistan Context

Abstract

Under the current increased interdependence and market globalization product and service markets have been in constant change. These changes in their turn contributing to the rise of the level of competition putting enormous pressures on enterprises of all sizes to respond quickly to the changes and developments in market affairs. One of the crucial factors of survival in this highly competitive world economy is to find the way to increase the productivity and efficiency while reducing the costs. Thus, the key for success has become enterprise’s capacity to innovate and come up with innovative solutions to the production processes. It is nowhere as obvious as in the case of small and medium sized enterprises (SMEs) whose share and contribution to the overall economy have been increasing, especially, in the developing or transition economies.