Innovation in high-technology SMMEs: the case of the new media sector in Cape Town

Creative industries are increasingly attracting the interest of academics and policymakers around the world. Policy enthusiasm is also directed in many countries towards developing knowledge-intensive or high-technology sectors. The new media sector is considered an innovative growth sector which holds potential for emerging countries. This case study examines innovation in new media firms situated in Cape Town. Theoretically, creative industries are linked to post-industrial and knowledge-based economies and the growth of services, and innovation in high-technology small and medium enterprises is also considered. This paper provides micro data regarding the innovation activities of new media firms based on purposive interviews. The study found that these firms are dynamic in terms of technological innovation. However, their innovation activities tend to be incremental and localised. Furthermore, various barriers limit their innovation enhancement and growth prospects. Public policy can support new media firms in terms of access to new business development funding and programmes supporting small enterprise innovation, improved design education and network opportunities.