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High-Technology New Firms

High-Technology New Firms
Variable Barriers To Growth

March 1995 | 144 pages | SAGE Publications Ltd
There has been a tendency for public and private industrial support agencies to adopt a common approach to providing aid to new high-technology firms, both at the time of start-up, and during the early years of the business.

This systematic analysis confirms that such a crude approach to high-technology new firm funding is inappropriate, since the potential for rapid early growth varies sharply between the three high-technology sectors of biotechnology, software and electronics, which were examined. A close investigation of the sectoral variations in the formation and early growth characteristics of new firms in these sectors provide valuable insights on both policy and theory. In particular, it is noted that the formation skills of the founder (or founders) have a strongly determining influence on the scope for choice of the founding technological base of the firm. In turn, exploitation of the initiating technology may involve substantial expenditure prior to any return on such investment. Indeed, seen in this light, many high-technology "growth" sectors appear to have been defined by high levels of expenditure rather than net income, which is not a recipe for rapid returns on investment.

Contextual Issues

The Interacting Impacts of the Founding Product Technology and Funding on Firm Formation and Growth
Product Innovation Behaviour, New Firm Formation and Growth: Some Introductory Conceptualisations

The Role of R&D in High-Technology Small Firm Formation and Growth

Purchasing, Sales and Marketing


A Summary of Results


`High-Technology New Firms: Variable Barriers to Growth makes a significant contribution to both the broader understanding of the theoretical and conceptual differences between high technology industry sectors, and a detailed understanding of the three sectors examined in this book' - Prometheus