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A theoretical study on interactive innovation and innovation capability building of SMEs

Innovation is a process full of interaction. The innovation system needs the collaboration among different organizations in the interactive process of knowledge creation, diffusion and application. However what interactive innovation does to the development of innovation capability? It's still a question under research. This paper is going to find a solution to this research question from theoretical perspective by taking SMEs as research objective. Based on literature review and archival analysis of interaction, process innovation and innovation capability, this paper develops an integrated conceptual model on the relationship between interactive innovation and innovation capability building and provides some propositions on the innovation capability building for SMEs.