The innovativeness and growth of rural SMEs during the 1990s

The paper summarizes the results of a study of innovation in rural small an d medium sized enterprises (SMEs) in England over the 1991-96 period. It is based on a survey of 330 firms drawn from 16 sectors and makes a compariso n between similar SMEs in remote and accessible rural areas. Using a multi- dimensional index of innovation, relatively little overall difference is fo und in the level of innovation between SMEs in the different areas. A remot e rural location is shown to influence innovation in different aspects of t he business in different ways. The most innovative firms are shown to be th ose that have achieved the fastest growth and best employment creation duri ng the 1990s.