Abstract:
Technological innovation system aimed at improving the analysis of innovation systems has been developed.
The main idea of this system is the only determinant factor of technological changes cannot be found in
individual companies or research institutes, but also in a wide social structure which comprises companies
and knowledge institutes are embedded there. Small and medium industries implement innovative activities
in response to two factors including limited economic growth and changeable business environment. This
study is aimed to investigate technological entrepreneurship and innovation in small and medium industries
and its role in the economic development of countries. The research is practical and uses the survey method.
In order to analyze the data, Friedman test is used. The statistical population consists of 50 employees of small
industries and 49 employees of medium ones. The data were collected through questionnaires including
Innovation and occupational Initiative of Martin Pachmn and entrepreneurship questionnaires of Marguerite
Hill with Cronbach’s alpha 0.702 and 0.776 respectively. It is hoped that the development of innovation and
knowledge will lead to the development of entrepreneurship and eventually economic development.
