A stronger export performance could be achieved by smaller indigenous companies if they increased their level of innovation activity, according to a new report from enterprise policy advisory board Forfás, writes Dick Ahlstrom.

Smaller firms are less likely to become involved in product or process innovation than larger firms, according to the report. Just 38.9 per cent of small firms with 10 to 49 employees become involved in these forms of innovation, compared to 75.8 per cent of companies with 250 or more employees. Just under 25 per cent of small firms undertake marketing innovation, compared to 35.3 per cent of medium-sized and 36.9 per cent of larger firms.