I would like to know if it is innovation culture or innovation capabilities that actually helps SMEs to survive, remain competitive and succeed in times of economic crisis.
The most capable (and experienced) businesses are always more able to manage crises. Culture is nice but when you come up against overwhelming economic forces it contributes little. On innovation - investment in innovative activity declines when there is uncertainty at the macroeconomic level - this acts through the demand and supply side of capital markets (debt and equity).
I personally view innovation culture to be more appropriate. I see innovation capability as means to an end, while innovation culture is an end in itself, being a lifestyle.