Keywords: small and medium–sized enterprises, SMEs, process innovation, energy intensity, machine tools industry, India, technological innovation, energy efficiency, sales growth, labour productivity, technical entrepreneurship
Technological innovations and energy intensity of machine tool SMEs in Bangalore: do process innovations contribute to energy efficiency?
This paper explores the relationship between technological process innovations and energy intensity growth of small and medium enterprises (SMEs) in the machine tools industry of Bangalore, India. It empirically substantiates that SMEs, which carry out process innovations with the objective of cost reduction are able to achieve reductions in their energy intensities, over a period of time. Apart from innovations, sales growth, labour productivity growth and technical entrepreneurship significantly contributed to bringing down energy intensity and enhance energy efficiency of machine tool SMEs. It is significant to note that process innovations contributed more to the reduction of energy intensity in more energy efficient SMEs compared to less energy efficient SMEs.