Improving Global Quality of Life

9.20 Small and medium enterprises’ needs and contributions
Small and medium enterprises (SMEs) present a dilemma. They are the companies in the greatest need of
technical support and technology transfer to maintain competitiveness, however:
Most don’t see technology as a strategic priority.
Few are willing to pay commercial rates for services.
The SME market is inherently fragmented and unstable.
It is therefore impossible to run a commercially freestanding economically viable technology transfer programme
directed at SMEs. Public funding is necessary to overcome this market failure. This is also true for
the SMEs operating in welding and joining sectors. This conclusion is supported by data (rounded) derived
from a number of national technology transfer programmes relating to numbers of companies engaged
at various levels of the programmes.
For example:
Number of companies contacted via the outreach/awareness activities – 150,000
Number of companies making enquiries as a result of the above – 10,000
Number of significant technical enquiries where expertise added value – 2,000
Number of expert one-on-one interventions (product and process reviews) – 500
Number of feasibility studies emanating from the above reviews – 50
Number of commercial contracts (i.e. commercially sustainable activity) – 12
SMEs however, or a proportion of them, are seen as the engine for economic growth. The effective
proportion appears to be quite small, though clearly of great importance. Some years back researchers from
Warwick University, UK, conducted a survey of the UK’s SME population which concluded that roughly 10%
of them are high growth companies, the other 90% being lifestyle companies or likely to fail within a five
year period. Within the top 10% more than 50% of employment growth came from only 4%. Technology
transfer programmes, therefore need to contain elements appropriate to the range of companies within
this spectrum if they are to have a beneficial effect on a significant fraction of the total population.
A comprehensive multi-level approach to technology transfer for SMEs may be necessary.
For example:
Raising awareness and stimulating interest within the manufacturing base through a range of
promotional activities and communication routes.
Providing a single point of contact on welding, joining and materials engineering and other
technologies reached via a telephone help line - that offers access to expert engineers- or via e-mail
for expert response.
Demonstration of relevance through interactive workshops and one-on-one contacts to explain the
details and potential applications of technologies.
Providing on-line advice and information through password-controlled access to web-based
knowledge management tool.
Carrying out Product & Process Reviews (PPRs) to define relevant issues and strategies for
development of capabilities in engineering manufacturing companies.
Completing Feasibility Study projects which verify PPR conclusions and provide support required to
assure successful adoption of innovative or best practice technologies.
152 Improving Global Quality of Life Through Optimum Use and Innovation of Welding and Joining Technologies