Small high technology firms in an era of rapid change: Evidence from Cambridge

Abstract

Outline There has been rapid change among Cambridge high technology firms. Aggregate data have been followed up in a longitudinal study and county‐wide data on high technology industry are summarised. Until 1990 failure rates were low and there has been incremental growth among these firms, which are predominantly very small, and together with a few older firms provide county‐wide employment in high technology for about 23,000 in 1992. High technology ventures have had difficulty obtaining funds on an independent basis, but investment in the form of acquisition by both British and foreign firms has been widespread. Firms in the Cambridge area may be serving international developments in technology transfer and innovation rather than invigorating the local and national economy.