Seminar paper from the year 2002 in the subject Business economics - Miscellaneous, grade: 2.3 (B), University of Manchester (Manchester School of Management), 32 entries in the bibliography, language: English, abstract: 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.