1.1 Background

In the competitive era, the businesses are innovating at pace greater than ever and small and medium enterprises (SME’s) are facing enormous need to innovating, yet, they have limited resources for carrying out technological innovation. The most readily available solution to SME’s in order to innovate effectively is the emulation model which offers low cost innovation through imitation (Inkster, 2007). The emulation model is not aimed at stealing other’s innovative ideas but it is based on observational learning and modelling of industry leader. The innovation through emulation is mainly carried out by selecting any company or brand as a role model and then actively learning to innovate in the way which makes the company successful (Asheim and Nauwelaers, 2003). However, the researchers have stated that there are number of strengths and weaknesses of emulation model and there is a need to find a right mix of innovation and imitation with an aim of gaining the long term benefits of innovation.

1.2Research questions

The current research will be conducted to answer the proposed research question.

1. How copycat innovation can be useful in developing innovation of SME’s?

1. How the benefits of imitation innovation can be maximized by avoiding its disadvantages?

1.3 Research Aim and Objectives

The aim of current research is use imitate innovation advantages enable enterprises to create source innovation enterprise.

1. The positive and negative effects of copycat in SMEs innovation development.
2. To highlight advantages of copycat innovation model for innovation development of SME’s.
3. To suggest the maximization of imitation innovation benefits in development of overall innovation of SME’s.

1.4 Structure of Dissertation

The dissertation will be comprised of five sections. The first chapter will be encompass discussion about background of the underlying phenomenon and it will state research questions and objectives. The second section will be about detailed review of literature and third section will provide justification of the adopted methodology of research. Fourth chapter will carry out discussion of study’s results and finally, the key findings will be discussed in relation to prior studies. The limitations and future recommendation will also be mentioned in current section.

1.Literature Review

The emulation model refers to imitation of innovation as opposite to outright copying or stealing of one’s idea. Under the paradigm of emulation model, the imitation is the art of extrapolating some portions of other’s ideas which are best for the company to adopt and adapt in accordance with innovation requirements (McKitterick, 1994). The emulation model provides that there is a need to choose right part of the innovation idea with an aim of appropriately innovate in cost effective manner. Along with this, there is a need to find out innovation for imitation which is internally consistent with the capabilities and potential of organization (Strang and Still, 2004). The organizational resources must be in line with the requirements for implementing innovation and it could serve as the way of reducing disadvantages and maximizing the benefits of emulation innovation model (Karo, 2010). The evidences of emulation innovation are significant in IT and manufacturing industry as the small and medium enterprises cannot afford to bring innovation at their own due to huge research and development expenses.

2.Proposed Research Methods

Among the two available designs, quantitative and qualitative, the current research will be based on qualitative research design as it is the most reasonable method for in-depth study of an underlying notion based on views of few cases (Miller and Salkind, 2002). The data in qualitative research is obtained in naturalistic setting and it has more responsiveness for stake holders of the research (Ramamurthy, 2011). Moreover, the question of how can be answered appropriately by relying on qualitative research design and the current study is aimed at suggesting the way that how advantages of emulation model can be used by avoiding its disadvantages. Therefore, in current situation the qualitative design is most appropriate.

Among the qualitative design, two different methods will be adopted. Firstly, the documentary analysis will be carried out by conducting the review of literature on imitation innovation research. The literature will be reviewed to explore the strengths and weaknesses of emulation model with an aim of understa