ABSTRACT
Successful innovation requires, first of all, individuals and teams capable of successful research and development. The basic reason for higher productivity in the American vehicle industry lay in superior production planning and engineering, which made possible both rapid introduction of new models, higher reliability and constant improvements in plant productivity. Large companies of course have other great advantages: the resources to finance large-scale development, automated production and massive marketing. Once a company grows large, the right management system becomes indispensable for an effective innovation strategy. The small size of the British market has delayed or even prevented profitable commercial exploitation of an innovation. The Prevention of Fraud Act, 1958 is a deterrent to the growth of small high-risk enterprises. The 1965 Budget, however, introduced new inhibitions on growing advanced-technology companies. In addition to the new capital gains tax, legislation on close companies obliged them to distribute a proportion of their profits.
