There are 17 million small and medium-sized enterprises (SMEs) in the
European Union which play an important role in economic life. Within
this subset, increasing recognition is being given to "new
technology-based ftrms. " 1 In the literature, different defmitions have
been put forward to describe the term new technology-based ftrm (Oakey
et a11988; Roberts 1991; Autio 1995; Storey and Tether 1998). Common
denominators include that the activity is based on the exploitation of
advanced technological know-how, the prior affiliation of founders with
research establishments and the entrepreneurial character of the ftrm.
Research studies in Europe, North America and the Paciftc Rim have
identifted these ftrms' important contributions in new employment
creation, export sales growth, product and process innovation and
structural adjustment (e. g. Rothwell & Zegveld 1982; OECD 1986; Oakey
et a11988; Acs & Audretsch 1991; Roberts 1991; Coopers & Lybrand 1996).
While there is a growing body of literature on new technology-based
ftrms that concentrates on strategic issues such as access to fmancial
resources, growth processes and innovation behaviour (see Storey and
Tether 1998, for a review), there has been relatively little research
into the process by which young high- technology companies have
internationalised. Research activity in the latter fteld has
historically been strongly oriented towards large ftrms or, more rarely,
towards "traditional transnational SMEs" in the manufacturing sector
that often act as suppliers of bigger ftrms and are characterised by
simple production technologies and low-technology products (United
Nations 1993).