The 'voice' approach of trade associations:support for SMEs accessing a research institute

Access to external sources of technical knowledge is one of the keys to staying innovative for small and medium-sized enterprises (SMEs). The literature suggests that SMEs with a weak internal R&D capacity do not make much use of institutional sources like research institutes and universities. In this paper I investigate how trade associations can induce member SMEs to use a research institute. The case of a public research institute and SMEs in the textile industry in Kyoto, Japan is examined. Evidence from the case suggests that trade associations facilitate the use of the institute by expressing a collective `voice' to the management of the institute. The effect is evident among active members in the use of services involving a large information gap as to their benefits. I also consider a shortcoming of the collective approach and suggest some measures to be taken on the part of research institutes.

Impact of the length of relationships upon the use of research institutes by SMEs

Recent studies of US industrial modernisation programmes argue that difficulties of establishing long-term relationships with users prevent them from facilitating development of innovation capabilities. The paper supports this argument through a survey of Japanese research institutes the US programmes were modelled on. In view of information asymmetries in their use, it tests the hypothesis that small and medium-sized firms start using the research institutes with ‘low information gap’ services and gradually move on to ‘high information gap’ services that often require more absorptive capacity. This is demonstrated both under one-to-one relationships and between groups of firms and a research institute.