ABSTRACT
The literature shows a picture of the small growing firm that, to support successfully its innovation capability, must have a minimum size, hold internal skills, and maintain a network of stable linkages with external economic agents. The small developing firms follow various paths of growth, leading them to explore opportunities provided by the market according to a kind of procedural rationality. The life of the small innovative firms is marked by changes that can give rise to different outcomes, such as growth, survival, and/or death. Most of the software small firms were established by technical entrepreneurs who are simultaneously responsible for management and development. Software production is characterised by applied know-how. Know-how is very complex to acquire and often requires the contribution of technical entrepreneur and a large number of skilled personnel. The entrepreneur’s technical role is crucial for firm’s development. The cases illustrate some characteristic growth paths of small Italian software firms established by entrepreneurs with strong technical competencies.
