ABSTRACT

This chapter presents a selection of relevant survey-based data which investigates the vitality of new technology-based small firms, their propensity for rapid growth and regional variations in subsequent employment. The research sought to examine the impact of local regional economic resources on internal innovation in totally independent small high technology firms of less than 200 employees. The overall pattern of the results tends to suggest that innovative high technology firms are more vigorous seekers of external funding. Hence, due to the sophistication and innovativeness of the majority of externally funded firms, external sources of investment capital may have a greater effect on the general level of innovation than its previously noted low incidence would initially indicate. A report for the Anglo German Foundation confirmed that new technology-based firms have played a major role in the US economy, while their role in the UK and West Germany has been only small.