There is a pervasive assumption that small firms are more creative and innovative than larger firms. That is, they identify problems and generate ideas (creativity) and idea select, develop and commercialise (innovate) those ideas to a greater degree than larger firms. However, there is a large degree of untruth to this assumption:

a) Small firms suffer from a different set of problems than larger firms. Small firms, for example, tend to lack resources whereas larger firms tend to have more resources but may be less ready for wholesale adaptation in times of radical change. But these limitations do not mean that one is more innovative than the other. The sheer availability of resources means larger firms should be able to innovate along product, process, positioning and paradigm lines more often. 

b) Large firms register more patents than small firms.

c) Relatively little data is available about innovation in small firms.

d) Most research of small firms has been conducted in the technology sector