Technological Innovations in Small Firms in the North-East of England

Abstract

In the north-east of England technological innovations by small firms follow a broad pattern in terms of dimensions, causal factors and sources of innovation. Product innovators owe their innovations largely to management motivation and growth ambition. They perceive the need for a particular product in the market and work towards its development in-house. Internal technical capability is decisive. Thus, product innovations emerge due to internal factors. The innovative products are patented and exhibited in national and international exhibitions and advertised in professional journals. As a result, the firms export a considerable share of their output and grow larger. Such firms are ‘offensive’ or ‘proactive’ innovators. They are innovation leaders. Incremental innovators either substitute a raw material to produce an existing product, or change the product shape/dimension/design on their own initiative or in response to their customers. Some upgrade their existing machinery or acquire new machinery for expansion or product diversification. Others introduce existing products due to customer demand or to enable further growth. They are decisive in their incremental innovations. The companies upgrade their technology or skills and change product shape, dimension or design with external support. In-house R&D is largely absent. Thus, incremental innovators emerge due to external factors. These firms are ‘defensive’ or ‘reactive’ innovators. They are innovation followers.

Keywords

small firms technological innovation entrepreneurship

Get full access to this article

View all access options for this article.

References

Advisory Council on Science and Technology — ACOST (1990), The Enterprise Challenge: Overcoming Barriers to Growth in Small Firms, HMSO, London.

Atherton

Hannon

(1997), ‘Strategic awareness and the process of innovation in the small business’, Journal of Enterprising Culture.

Bank of England (2000), Quarterly Report on Small Business Statistics, April, Domestic Finance Division, London.

Bannock

(1976), The Smaller Business in Britain and Germany, Wilton House Publications, London.

Bannock

Albach

(1991), Small Business Policy in Europe, a project of the Anglo-German Foundation for the Study of Industrial Society.

Bhushan

Y. K.

Easwaran

(1997), ‘Innovation: The concept, the process, the people’, in Mitra

Formica

, eds, Innovation and Economic Development, University-Enterprise Partnerships in Action, Oak Tree Press, London.

Cross

(1983), ‘The United Kingdom’, in Storey

D. J.

, ed, The Small Firm: An International Survey, Croom Helm, London.

Department of Trade and Industry — DTI (1996), A Guide to Help for Small Firms, May, London.

ESRC Centre for Business Research (1996), The Changing State of British Enterprise: Growth, Innovation and Competitive Advantage in Small and Medium Sized Firms 1986–95, Department of Applied Economics, University of Cambridge, Cambridge.

10.

Freeman

(1989), ‘Successful industrial innovation’, in Roy

Wield

, eds, Product Design and Technological Innovation, Open University Press, Milton Keynes.

11.

Freeman

Soete

(1997), The Economics of Industrial Innovation, 3 ed, Pinter Publishers, London.

12.

Ghobadian

Rekettye

Liu

(1995), ‘Small firms and product innovation — evidence from U.K.’, Excellence in Small Business Management, 25^th European Small Business Seminar, 20–22 September 1995, Volume I, pp 423–434.

13.

House of Commons (1999), Small Business and Enterprise, 13^th report, Trade and Industry Committee, London.

14.

Keogh

Evans

(1999), ‘Strategies for growth and the barriers faced by new technology based SMEs’, Journal of Small Business and Enterprise Development, Vol 5, No 4.

15.

Lambert

Barber

(1998), ‘Technology sources for SMEs’, in Oakey

R. P.

During

, eds, New Technology-Based Firms in the 1990s, Vol V, Paul Chapman, London.

16.

Mole

Elliott

(1987), Enterprising Innovation: An Alternative Approach, Frances Pinter (Publishers), London.

17.

Oakey

R. P.

(1985), ‘Innovation and regional growth in small high technology firms: Evidence from Britain and U.S.A.’, in Storey

D. J.

, ed, Small Firms in Regional Economic Development, Cambridge University Press, Cambridge.

18.

Organization for Economic Co-operation and Development —OECD (1981), The Measurement of Scientific and Technical Activities, Frascati Manual 1980, OECD, Paris.

19.

Roper

Stephen

(1995), ‘Managing product innovation to maximise small business growth’, Excellence in Small Business Management, 25^th European Small Business Seminar, 20–22 September, Volume I, pp 405–421.

20.

Rothwell

Roy

Zegveld

Walter

(1982), Innovation and The Small and Medium Sized Firm, Frances Pinter (Publishers), London.

21.

Schmookler

(1966), Invention and Economic Growth, Harvard University Press, Cambridge, MA.

22.

Small Business Research Centre (1992), The State of British Enterprise: Growth, Innovation and Competitive Advantage in Small and Medium-Sized Firms, Department of Applied Economics, University of Cambridge, Cambridge.

23.

Stanworth

Westrip

Watkins

Lewis

, eds (1982), Perspectives on a Decade of Small Business Research, Gower Publishing Company Ltd, Aldershot.

24.

Stokes

David

(1995), Small Business Management, 2 ed, DP Publications, London.

25.

The Times (2000), 22 March, London.

26.

Vickers

North

(1998), ‘Policy for innovation and technology support: Regional Technology Centres’, in Celebrating The Small Business — Twenty-One Years of Small Business Research — Conference Proceedings, Vol 2, November, Durham.