SMEs 'bear the brunt of innovation' in the technology sector
Dec 06 2007
SMEs are more likely to be bearing the brunt of developing new technology, according to leading business experts.
The National Endowment for Science, Technology and the Arts (NESTA) says larger businesses are more concerned with product enhancement and mass production rather than developing alternatives.
In addition, start-up firms face difficulties breaking into new markets within the sector. Anthea Harrison, NESTA investment director, says starting up a new business even with good ideas can be hard because of the scarcity of funding.
'There must be perfectly good ideas that would potentially be excellent companies that don’t get funding, because the distribution is not even,' she comments.
Ms Harrison also says that with innovation comes increased business risk. As some new products do not have existing demand, a market place has to be created around them.
These ventures are the most exciting, 'but obviously they are the most expensive and risky,' she concludes.
Last month the government announced it would provide £100 million of funds through the Technology Strategy Board for research into sectors such as green energy and communications.
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