Titel: Innovate or Stagnate! ? Open innovation in manufacturing small and medium-sized businesses in Småland.The purpose of the study is that, from a leadership perspective (innovationmanagement), create a better understanding of open innovation in manufacturing small and medium-sized enterprises. The study therefore intends to contribute to the understanding of how open innovation processes leads to greater innovation in manufacturing small and medium sized businesses.We have used a qualitative research method and adopted an abductiveapproach. We made interpretations and created meaning based on our research results.Our theoretical framework is based primarily on Chesbroughs (2003) research on open innovation. Based on this model, we have selected a number of other theories, which we perceived as prerequisites for small andmedium sized companies in open innovation processes.