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Drawing upon the framework of Sectoral Innovation Systems, this study explores the patterns of technological innovation among small and medium-sized wooden furniture manufacturers in Malaysia from two perspectives viz., sources of knowledge and technology and capability of forming linkages. The empirical evidence for the study was derived from 70 survey respondents. The wooden furniture industry in Malaysia warrants an in-depth analysis as it is among the very few full-fledged home-grown industry that has successfully penetrated the global market. The study reveals that the majority of the innovative enterprises are mainly young home grown SMEs. They are centred on business-driven activities. Clients, customers and suppliers are the key partners for co-operation in innovation, as well as sources of technology and knowledge.
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