In the last twenty years, many researchers and even governments have undertaken studies concerning small, innovative firms operating in new technology sectors. Different researchers have concluded different things from different studies, and different opinions prevail in many areas.
The underlying notion of the paper is to question if large firms are better at innovation than small firms. An answer to this question in the light of the findings of this paper will be attempted in the conclusion in chapter seven. Specifically, the purpose of this paper is to define and highlight briefly the main characteristics of NTBFs, and to point out the level of cooperation between small and large firms in the technology sector. It will then evaluate these in the light of the Mobile Phone sector. The influence of governments on small innovative companies will also be considered.
Table of Contents
1 INTRODUCTION
2 DEFINITION NEW TECHNOLOGY BASED FIRMS
3 CHARACTERISTICS NEW TECHNOLOGY BASED FIRMS
3.1 SURVIVAL
3.2 FOUNDERS
3.3 GROWTH AND EMPLOYMENT
3.4 EXTERNAL FACTORS
3.5 NETWORKING
4 SMALL FIRMS – BIG FIRMS
4.1 WHY COLLABORATE?
5 PUTTING THEORY IN PRACTISE: THE MOBILE PHONE SECTOR
5.1 MOBILE PHONE TECHNOLOGY
5.2 EXCURSION: CHINA – THE WORLD’S LARGEST MOBILE PHONE MARKET
5.3 NOKIA AND SMALL COMPANIES
5.4 INNOVATION OF THE SMALL PLAYER – PICOCHIP
5.5 CONCLUSION MOBILE PHONE SECTOR
6 COUNTRY INVOLVEMENT IN INNOVATION
7 CONCLUSION
Objectives and Research Themes
This paper examines the role of small, innovative firms within the high-technology sector, specifically questioning whether large corporations maintain a fundamental advantage in innovation. By analyzing the characteristics of New Technology-Based Firms (NTBFs) and their collaborative relationships with larger entities, the research explores how small players maintain competitive advantages, using the mobile phone industry and international government policies as practical case studies.
- The competitive dynamics between small, innovative firms and large corporations.
- Key survival factors and characteristics of New Technology-Based Firms (NTBFs).
- The significance of collaborative networking in the mobile phone industry.
- Case study analysis of small-firm innovation: The role of Picochip and the Chinese market.
- Comparative analysis of international government support systems for small-firm innovation.
Excerpt from the Book
5.4 Innovation of the Small Player – Picochip
The introduction of third-generation (3G) mobile phone networks is a costly affair: the existing base stations - the heart of the mobile phone network - will require significant upgrades as equipment is modernised in order to sustain the higher data rates of 3G mobile phones. On top of that, many more base stations will be needed in the future.
Picochip is a small UK, Bath-based Microelectronics Company that has developed a silicon chip that could considerably reduce the cost of the 3G rollout. The company claims that the chip can be reprogrammed in such a way that would allow mobile phone operators to make future upgrades to base station equipment simply by way of software downloads rather than replacing it with an entirely new hardware infrastructure (Trendle 2002).
"Today‘s base stations are fixed circuits using chips with a fixed function," says Peter Claydon, founder and Chief Operating Officer of Picochip. "But 3G is a range of continually-changing standards. Japan is even talking of introducing 4G in five year’s time. It thus appears that there is a strong demand for more flexibility. Our silicon chip contains hundreds of microprocessors that can be re-programmed. It can replace those chips that only do one particular job" (Trendle 2002).
Summary of Chapters
1 INTRODUCTION: Outlines the research focus on NTBFs, questioning the innovation superiority of large firms compared to small, innovative companies.
2 DEFINITION NEW TECHNOLOGY BASED FIRMS: Defines NTBFs by examining narrow versus broader academic perspectives to establish a scope for the paper.
3 CHARACTERISTICS NEW TECHNOLOGY BASED FIRMS: Identifies five core areas—survival, founders, growth/employment, external factors, and networking—that determine the success of NTBFs.
4 SMALL FIRMS – BIG FIRMS: Investigates the cooperative relationship between small and large companies and why collaboration is often mutually beneficial.
5 PUTTING THEORY IN PRACTISE: THE MOBILE PHONE SECTOR: Evaluates theoretical findings through real-world examples, including mobile technology trends, the Chinese market, and the innovative approach of the small UK player Picochip.
6 COUNTRY INVOLVEMENT IN INNOVATION: Highlights government initiatives in the USA, Canada, China, and the UK designed to support and foster innovation in small firms.
7 CONCLUSION: Synthesizes findings to conclude that both small and large firms gain through cooperation, and emphasizes that agility and culture are key drivers for small-firm success.
Keywords
New Technology-Based Firms, NTBFs, Innovation, Small Firms, Mobile Phone Sector, Picochip, Networking, Competitive Advantage, Entrepreneurship, Government Support, R&D, 3G Technology, Business Strategy, Technology Distribution, Collaboration.
Frequently Asked Questions
What is the core focus of this research paper?
The paper examines whether large firms are inherently better at innovation than small firms, analyzing how small companies operate within the high-technology landscape.
What are the central thematic areas of the study?
Key areas include the definition and characteristics of NTBFs, the nature of collaboration between small and large enterprises, industry-specific practices in the mobile phone sector, and government-led initiatives to foster innovation.
What is the primary research goal?
The goal is to determine if large companies hold a definitive innovation advantage or if small firms, through flexibility and niche innovation, can successfully compete or collaborate within the industry.
Which methodology is employed in the work?
The authors utilize a review of existing academic literature combined with practical case studies, focusing specifically on the mobile phone industry and policy approaches in four specific countries.
What topics are discussed in the main body?
The main body covers the definition and characteristics of NTBFs, the mechanics of small-big firm interaction, detailed case studies (like Picochip and the Chinese mobile market), and comparative analyses of international innovation support programs.
Which keywords define the work?
The paper is characterized by terms such as NTBFs, Innovation, Mobile Phone Sector, Networking, Competitive Advantage, and Corporate Investment.
Why is the example of Picochip significant to the study?
Picochip illustrates that small firms can possess a unique "innovative edge" due to their size, allowing for faster decision-making and flexible technology, such as their reprogrammable silicon chips.
How do international government policies differ in supporting innovation?
Countries employ varied strategies, ranging from the U.S. SBIR three-phase grant program and Canadian venture capital support to specific tax incentives and protectionist market policies seen in China and the UK.
- Quote paper
- Ben Beiske (Author), 2002, Innovation in High-Technology Companies: The Small Firm's Perspective with Reference to the Mobile Phone Sector, Munich, GRIN Verlag, https://www.grin.com/document/15454
