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This study shows how R&amp;D resources improve firm performance, taking advantage of open innovation activities in SMEs. It focuses on the mediating effect of R&amp;D openness on the relationship between R&amp;D resources and firm performance in SMEs. We employ secondary data of 1,046 SMEs located in South Korea’s innovation clusters wherein scientific knowledge and technologies are efficiently created, transferred and utilised. The findings show that R&amp;D resources (technological, human and financial resources) and R&amp;D openness in SMEs positively affect firm performance. On the one hand, only SMEs with more financial resources (R&amp;D investment) achieve better firm performance via a higher degree of external R&amp;D collaboration. Fewer technological resources or more financial resources in SMEs can be a motivation for external collaboration. Differentiated open innovation strategies are required depending on the characteristics of R&amp;D resources in SMEs in order to improve firm performance.

technology analysis and strategic management

Do R&amp;D resources affect open innovation strategies in SMEs: the mediating effect of R&amp;D openness on the relationship between R&amp;D resources and firm performance in South Korea’s innovation clusters