Technology Licensing and the Small and Medium-Sized Firm

Abstract

Julian Lowe and Nicholas Crawford, of the Department at the University of Bath, England, carried out the research for this paper with the help of finance from the Leverhulme Trust. The position of small and medium-sized firms with respect to new product development presents an interesting paradox. There is a growing emphasis in their role in employment generation but success in this can only come about through having a suitable flow of new products with which to enter new markets. While in some industries such firms have shown remarkable skill in the areas of both innovation and invention, it is unlikely that they will be able to rely solely on their own resources for the generation of new products. One possible solution might be for small and medium firms to rely to an extent on bought-in technology and manufacture innovative products under license and it is this which is the central theme of this paper.