Empowering digital innovation in SMEs: Experimental evidence from design sprint innovation contests

Innovation contests, such as hackathons and other time-bound competitions, foster innovation by promoting creative problem-solving, interdisciplinary collaboration, and rapid idea development. This study examines whether a Design Sprint-based contest can encourage SMEs to adopt design approaches. Conducted as a randomized controlled trial (RCT) with 190 SMEs across seven European countries, the experiment assessed the impact of a three-day contest on SMEs' knowledge, attitudes, and intentions regarding design methodologies. Results show a 19 % increase in SMEs’ understanding of the Design Sprint methodology and a 12 % improvement in their ability to implement it. However, these gains did not translate into significant changes in attitudes or intentions to adopt design practices, highlighting persistent structural barriers such as resource constraints, risk aversion, and skepticism. While the intervention reduced perceived obstacles like insufficient expertise and information, it failed to address broader organizational challenges. These findings suggest that innovation contests can cost-effectively transfer design knowledge and lower adoption barriers but require sustained support to drive lasting organizational change. • Experimental cross-country study on a design-driven innovation contest for SMEs. • Causal evidence shows a 19 % increase in SMEs' design knowledge. • Greater design knowledge doesn't lead to higher adoption intentions. • The contest lowers some perceived barriers, but structural constraints persist.