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Since new information necessary for innovation mainly comes from outside the firm, it is essential that the firm should innitially obtain such information, and then integrate it with indigenous resources for innovation owned by the firm. During these two processes, it is needless to say that ICT (Information and Communication Technology) has important roles to play. The research questions of this study are to examine how internal innovation capability such as the technological level and RD (ii) SMEs use two channels to connect to external linkages with and without ICT; and (iii) ICT is the basis of other factors which promote innovation. Keywords: External linkages, SEM, causality, R&D, technology

Internal Innovation Capability and ICT Use in the Innovation Process from the View of Connectivity in Japanese SMEs