United Kingdom High-Technology Small Firms in Theory and Practice: A Review of Recent Trends

Abstract

PROFESSOR R. P. OAKEY IS PROFESSOR OF Business Development and Dr. Syeda Masooda Mukhtar a fellow in SME Management, both at Manchester Business School, England. Until 1996, the 1990s had been characterised by reduced United Kingdom policy concern for the fortunes of high technology small firms (HTSFs), certainly when compared with the 1980s. However, the end of 1996 and early 1997 witnessed a sudden resurrection of intense interest in HTSF policy. With this welcome re-birth of concern for high technology SMEs, it appeared opportune to conduct a review of policy towards HTSFs, both in the light of accumulating academic evidence, and in view of the recent contributions to policy prescription from the Confederation of British Industry (CBI), the Bank of England, and a Select Committee of the House of Lords. A review of past and current policy thinking is conducted, with particular attention to the most recent assertions of the CBI and the Bank of England on HTSF formation and growth problems. The paper then moves on to discuss the impact of academic research results on the formation of government policy in the past, with speculation regarding the future role of such work. Finally, by building upon the preceding review of past and current policy, a number of future policy options are proposed in the conclusions to the paper.