This study investigates the link between a small firm’s investment in R&D and its growth strategy. A firm’s growth strategy refers to the means by which the organization plans to achieve its objective to grow in volume and turnover. We categorize firm growth strategies into eight distinctive clusters: opportunity explorers, radical innovators, business developers, business expanders, profit makers, business rebuilders, stagnators, and downsizers. We argue that understanding a firm’s growth orientation provides a way to assess the returns of its R&D investments, because an organization’s intangible growth strategies and tangible inputs are connected.

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Keywords growth orientation, growth strategies, R&D investment, technology entrepreneurship
Journal Technology Innovation Management Review
Leminen, Seppo, & Westerlund, M. (2012). Categorizing the Growth Strategies of Small Firms. Technology Innovation Management Review, 5–9.