Regional Ecosystems for Small Innovative IT Firms

The question raised in the title of this editorial is relevant for two reasons. First, a small innovative information technology (IT) firm is an incomplete system. Only a part of competencies is internal and under the entrepreneurial control, another part is external and tied to the company by a variety of collaboration forms. It follows that the small IT firm has uncertain boundaries. It is a blurred system deeply ingrained in the surrounding environment. Second, the high rate of innovation in IT sector requires that competencies should be renewed with a very high frequency. This fact implies the need of an environment particularly rich in technical, professional, and managerial skills. The environment becomes particularly important in the medium to long term. A small IT firm usually comes to life around an innovative idea that exploits the potential of an emerging technology. Consider, for example, thousands of small businesses that make apps for mobile phones. The IT firm is genetically innovative. Problems come later. As soon as the initial innovative drive runs out and a small firm must renew its set of competencies. In this case the environment becomes crucial, and the richness of the local context affects the competitiveness of the company, and often its own survival. If above statements are plausible, then there is a problem that has a strong relevance to both the underdeveloped areas of the industrialized countries, and the emerging countries: Which external competency system can support innovative capacity of small IT firms?