Abstract: Understanding how the determinants of process innovation affect the SMEs growth. The main contribution of this work is to analyze the determinants of process innovation in SMEs. This preliminary study considers a combination of factors to study the impact of these on process innovation in SMEs in the cutting tool industry, thereby enhancing our knowledge of success factors in the innovation of process of SMEs. To accomplish this, it explores how the innovation process in SMEs firms depends on Research & Development (R&D) and the use of external sources. Data collected through a structured questionnaire was analyzed using statistical tools to establish correlation between dependent and independent variables. The results support that the activities such as advanced machinery, external knowledge, training, new machinery are crucial to understanding the process innovation in the firm.
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