Why is innovation often smaller in SMEs (small and medium-sized enterprises) than in big companies?
a) Because SMEs' profit from innovation is small due to their limited market reach and therefore the return on innovation is lower.
b) Because the employees in SMEs are less innovative than in large companies and therefore the probability of success is smaller.
c) Because innovation investments are larger in SMEs than in big companies.
Answer: a) Because SMEs' profit from innovation is small due to their limited market reach and therefore the return on innovation is lower.
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Marketing
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