Abstract
Are small high-technology firms more important to economic growth and wealth creation than has generally been recognized? Will their importance continue to increase? The author's answers are yes. Technology change, innovation and breakthroughs will continue to become more important. Attracting enormous amounts of very high risk capital is key to success. Small high-technology firms have unique advantages, including raising capital through the possibility of exponential appreciation of the value of their stock. The need is for initial financing to determine the technical feasibility of ‘too high risk’ ideas and reduce the risk to levels acceptable to private investors. The $1.2 billion US Small Business Innovation Research (SBIR) Program is designed to do that. It has recently been renewed until 2008.
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