Ray Oakey

Technical entreprenenurship in high technology small firms: Some observations on the implications for management

Abstract There is much current interest, both in the encouragement of entrepreneurship, and in the formation and growth difficulties encountered by high technology small firms. This paper seeks to inform these concerns by offering a number of conceptual insights on the role of the technical entrepreneur in the high technology firm formation and growth process. Since many new high technology firms are founded by technical entrepreneurs (often from university backgrounds), an understanding of the factors that influence the behaviour of such individuals is highly pertinent to future policies aimed at encouraging this key type of high technology enterprise. By exploring aspects of the strategic approaches adopted by these individuals, this paper seeks to provide guiding principles for such policies.

High Technology Small Firms: Their Potential for Rapid Industrial Growth

DR. RAY OAKEY IS A SENIOR LECTURER at Heriot-Watt University Business School, Edinburgh, Scotland. He is currently conducting wide ranging research into the problems of industrial innovation and growth in large and small firms in the United Kingdom and hungary. This paper examines the growth performance of British high-technology small firms throughout the 1980s. The analysis is divided between a consideration of employment growth, and of the extent ot which firms rely on self-financed growth, in samples of firms in the electronics, scientific instruments and boitechnologh sectors. It is noted that the observed growth, in both individual firms and in aggregate, has been unimpressive. It is argued that a generally high livel of observed introspection with regard to funding in survey firms is likely to be partly caused by a poor external industrial environment for the encouragement of small firm innovation. consequently, the paper concludes by arguing for a more 0proactive government approach to the encouragement of high-technology small firms.

Clustering and the R&D Management of High-Technology Small Firms: In Theory and Practice

Much of the policy assistance for high-technology small firms (HTSFs) over recent years has been directed at encouraging their research and development (R&D) collaboration through local networking and technology transfer. Following a consideration of why HTSFs are formed, and how they perform R&D in order to cope with the competitive environment, this paper explores the value of external collaborative R&D to internal R&D management, inside geographically concentrated incubators, science parks or clusters. It is concluded that, although R&D collaboration with external partners occurs in limited instances, much HTSF R&D is highly confidential, competitive and wholly internalised. This tendency, as far as it relates to R&D management, is significant in that it minimises the likelihood that local management collaboration between co-located firms will improve the performance of R&D projects.

Taxation and the Performance of Technology Based Small Firms in the U.K.

This paper analyses a database of U.K. small companies in order to establish the profile of Technology Based Small Firms (TBSFs) in terms of their demography, financial structure and performance, and tax affairs. Following the evaluation of the impact of direct taxation on the high technology small companies, compared to that of their low technology counterparts, the paper briefly discusses the current policy debate about the nature and appropriateness of tax-based incentives for the development of this strategically important scale and type of enterprise.

Utilisation of science and technology graduates by the small and medium‐sized enterprise sector

States it is widely recognised that, despite excellent higher education research and training expertise, the UK is generally weak in transferring this knowledge into marketable products (House of Lords, 1997). In particular, there is serious under‐utilisation of science and technology graduates by the increasingly important small and medium enterprise (SME) sector. The aim of this paper is to explore the potential for absorbing the “know‐how” of science and technology graduates into the SME sector. Special consideration will be given to the attitudes of these graduates towards SME employment, while business start‐ups as alternative career options are also explored. The data are derived from a survey of 250 Manchester‐based science and technology students. The paper concludes with relevant policy recommendations.

Business information and regional economic development: some conceptual observations

Abstract This paper examines problems associated with the provision and absorption of business information on which business decisions are (or should be) based. With the aid of relevant literature, arguments are developed to consider the encouragement of informal business information networks in depressed industrial regions where ‘best practice’ industrial knowledge may be scarce.

Regional Sub-contract Suppliers to Prime Defence Contractors: Evidence of their Performance in Response to Recent Changes in Demand

OAKEY R. P., JAMES A. and WATTS T. (1998) Regional sub-contract suppliers to prime defence contractors: evidence of their performance in response to recent changes in demand, Reg. Studies 32 , 17-29. There is considerable evidence that technological change occurs unevenly over geographical space, and that change is faster in core areas of national economies than at their peripheries. The principal result of this paper is a confirmation that South East firms similarly initiate diversification technology strategies more readily than their regional counterparts. It is noted that defence spending is a disguised form of regional aid when contracts are awarded in peripheral parts of the United Kingdom. Thus, it is concluded that, given the laggard behaviour of peripheral firms regarding diversification, recent defence spending cut backs in these areas are likely to have a strong negative impact on industrial activity. OAKEY R. P., JAMES A. et WATTS T.(1998)Les soutraitants regionaux aux premiers fournisseurs mi...

Knowledge creation, its transfer, and the role of science enterprise education: a research agenda

Summary Over the past 15 years, a crucial part of the U.K. Government’s agenda has been to develop industrial and innovation policies in support of entrepreneurship and the creation of new businesses. They included significant investment in an incubator fund, increased funding for the exploitation of technologies by high tech small firms and the establishment of nation-wide Science Enterprise Centres located within the higher education sector. This paper argues that to a large extent this policy has preceded evidence- based theory. The policy research agenda should focus on all stages of the nascent enterprise development process. Our definition of nascent entrepreneurship takes the business creation process back to the twin notions of an intention and a germ of an idea. A nascent entrepreneur is ‘someone who initiates serious activities that are intended to culminate in a viable business start-up’ (Aldrych, 1999:77). Research should address what these activities are and how long it takes to progress through the process. The paper suggests that the resource based view (RBV) should be extended to encompass nascent entrepreneurship in science enterprise. Theory should focus on knowledge development within the Nascent Entrepreneurial Unit (NEU) as a necessary resource. Aspects of knowledge acquisition in science enterprise are tacit and embedded in a network of relationships required to support venture development. The policy agenda should thus research the knowledge production process, where knowledge is known to be widely distributed amongst a transdisciplinary group of scientists, practitioners and professionals in investment and business support of NEUs. These impacts on what and how skills are taught in science enterprise. Examples suggest that business founding is based on team starts and this in turn implies that the human capital element may be crucial component on new enterprise. The paper argues that a policy research agenda should not only examine NEUs at different stages in their development, but also examine whether differences arise between sectors. Finally it suggests that there are subtle cultural and situational factors which affect entrepreneurial behaviour, and therefore that an international comparative study would be both a valuable and essential aspect.

The contribution to innovation and regional growth of high technology based firms in the United Kingdom

This paper considers the evolution of regional policy in the United Kingdom in general, and the particular role of high technology new firms in creating industrial growth at national levels. Following a brief discussion of the major stages of industrial development in the United Kingdom the changing geographical impact of high technology small firms is considered. It is observed that, following a period of strong agglomeration in well known concentrations there has been a tendency for dispersal to more peripheral development locations. In the final phase of the paper, the theme of policy towards high technology small firms is developed in a more detailed non-spatial context with the support of empirical data.

Book Review: Albert N. Link (ed.) Entrepreneurship and Technology Policy. Cheltenham, UK and Northampton, MA: Edward Elgar, 2006. 384 pp. ISBN 1—84542— 308—9, £110 (hbk)

122 In Part 2, the consequences, the strategic necessity hypotheses (SNH) are explored and form an important conceptual framework for the remainder of the study. The research goes on to consider both ‘downstream’ (i.e. customer relationship marketing [CRM]) and ‘upstream’ applications (i.e. supply chain management [SCM]) before presenting a qualitative case study based on the analysis of interviews with 9 managers in SMEs. Part 3, the implications, provides a limited discussion and offers suggestions for managers and policymakers with the caveat that no direct implications can be taken from the empirical work only ‘soft elements’. These include, for managers, the need to: be aware of the increase in IT adoption in all markets; look for indirect benefi ts; make decisions consistent with their strategies and resources; and, prepare their fi rms for IT adoption (p. 151). Levy and Powell’s work in this area provides useful additional insights (Levy et. al., 2003; Levy and Powell, 2003). For policymakers the author suggests a substantial increase in training and consultancy for SME personnel and the promotion of technical outsourcing strategies. In short the author’s warning to SME manager is that if they do not adopt IT solutions to exploit opportunities in their markets someone else will. This book is welcome. It is a well-presented and articulated thesis that makes a contribution to the fi eld. In answer to the original question – does the author use this opportunity well? Yes, but not fully. If however the author’s intention is to ‘always leave’em wanting more’ it did indeed, at least in my case, achieve this.