The high technology small firm sector in the UK

Abstract

Charts an increase in the total stock of high technology firms over the 1987 to 1991 period in the UK, as well as the employment contribution of firms over the same period. Finds that total employment in high technology firms declined over this period. However, the employment contribution of small high technology firms, particularly those engaged in technology‐based services activities increased. The employment contribution of this group was unable to offset the major employment losses made by large high technology firms (those with 100 or more employees) and firms engaged in more “conventional” activities in the wider economy, Claims that policy makers should continue to encourage the formation, survival and development of a growing and diverse stock of new and small high technology firms in the UK.