Innovation in Small and Medium Sized Firms in the Electronics Industry

Abstract

This research project addresses the subject of the
contribution of small and medium sized electronics firms
to innovative activity. The definition adopted for firms
falling within the remit of study was that they
should employ no more than 2UU people and be wholly
UK-owned.

An analysis was attempted of the research undertaken
on the smaller firm sector as a whole and a comparison
was drawn between present government policy towards
the sector and that forwarded by small firis commentators.
Attention then focussed on the electronics industry.
Interviews were conducted at 51 smaller electronics
firms with a view to determining how those involved
in the industry saw the role of such firms on both
a general level and, more specifically, their
contribution to innovative activity.

It was found that although product innovation was
apparent, by far the largest share of innovative activity
was devoted to the process innovation field. Many
of these process innovations are kept secret from
competitors to enable the smaller firm to survive in
a competitive environment. One of the most
interesting facts to emerge was that innovation was
used, in some instances, to enable the firm to remain
small.

The research concludes with a brief summary of the
implications of the findings on both a yeneral and
a more specific level.

Date of Award	1984
Original language	English