The development of capability for tackling R&D issues in small companies: a case of a CNC-controller manufacturer in Taiwan

Abstract

This study attempts to clarify the question of how we should observe the growth of R&D capabilities in Taiwan's small companies. It examines the local characteristics of SMEs' (Small and Medium-sized Enterprises') R&D activities and argues the inadequacy of applying western theories directly in the unique environment of Taiwan. A new premise of how to conduct the observation is proposed. A case study is administrated in a small manufacturer of CNC control boxes to illustrate the adequacy of this premise. The implications of this case and its theoretical generalisation for observation of SMEs' R&D capabilities are discussed.