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TECHNOLOGY

Sources of Technology
Technology Transfer
 
Technology Programs & Initiatives
  Acquisition of new technology by the firm is typically an input to developing proprietary products and services. External sources of technology embodied in products or in the form of technical knowledge, are generally complementary to internal resources.

Indicators of receptivity and innovativeness in SMEs were generated by the survey. These include:

the level of employment of graduate Qualified Scientists and Engineers (QSEs)
QSEs roles in firms
whether any staff specialise in R&D or in other innovation related functions
the level of expenditure on new product and process developments
the frequency of introduction of new technologies into the firm.



External Technology Sources
The main external sources of technology were:

Suppliers
Customers

Knowledge Pools (eg Patents, Trade Fairs, Exhibitions, Trade Associations and Legislation)
SET Base - Direct (eg HEIs, FE Colleges, Research and Technology Organisations)
Other External Sources

e.g. Consultancy Firms, Business Links

Importance of External Sources
Firms rank their internal resources as the most important for technological innovation. They rank the various types of external source as follows:

Vertically Linked Firms - Suppliers and Customers
Customers
Knowledge Pools
SET Base & Technology Intermediaries

Concluding Remarks
This paper is intended primarily to contribute to discussion of the issues of policy towards innovation, especially in SMEs and to stimulate further debate. Some of the characteristics of manufacturing SMEs that emerge strongly from the analysis and have a bearing on the design and implementation of innovation and technology policy towards these firms can be summarised as follows:

The manufacturing SME Population is highly varied in its capacity for innovation and cannot be treated as homogeneous by policy makers.
internal competencies are the main drivers of innovativeness and performance
the supply chain is the largest source of technological information, but extensive use is made of knowledge pools
other external sources, including the SET base, are used as complements to internal resources, by the most technologically innovative SMEs.
high tech firms are important for growth and efficiency, but are a minority of SMEs. Firms in all sectors who are progressive but not leading edge, account for a large share of output and are vital to the supply chain.

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