The role innovation plays in small and medium-sized enterprises (SMEs) will be put under an intense spotlight over the next few months.

Brand consultants StrategiCom and the Singapore Business Federation (SBF) will undertake a wide-ranging study into what has become a corporate buzzword but is still a vague concept to many bosses.

Focus groups will be used to quiz 150 chief executives on how they see, use and value innovation.  The results will be corroborated with desktop research on similar studies that have been conducted here and overseas.

The study aims to see the role innovation plays in SMEs, whether it is seen as a valuable pursuit and how successfully companies manage to brand their breakthroughs.

SBF chief executive Teng Theng Dar said there is a general view that innovation is reserved only for multinational corporations as it involves high risks and costs stemming from intensive research and development.

"This study will seek to find out if this is an opinion that is jointly held and perpetuated by SME owners," he said.

"Through this, we will see if we can address any shortfalls or misconceptions about innovation that will help SMEs improve their business and productivity."

StrategiCom chief executive and group principal consultant Wilson Chew added that innovation is a must for SMEs if they are to gain comparative advantage.  And it can take place without incurring much cost, for example, by improving administration to enhance efficiency, he said.

"Innovation alone, however, is not enough," he added. "The next step is branding the innovation - to commercialise it and tell consumers about (it)... Only then can you fully reap the benefits."

StrategiCom said SMEs have certain advantages such as ease of communication, the ability to make fast decisions and flexibility, but there are challenges.

These include reduced technological competency while they rely to a greater extent on suppliers, customers and the ability of senior managers to drive innovation.

The study results will be presented at the Singapore Brand Conference in March.