Industrial Research 



83 



selves informed about new methods of production which 

 would have a bearing upon the improvement of their 

 own operations. In G instances companies wiiose busi- 

 ness was largely on a contract basis and less dependent 

 upon a specialized technology were not averse to discuss- 

 ing broad technical problems of the industry with 

 competitors, or even to taking licenses for the use of 

 specific technical developments. 



Of marked significance is the resource that small 

 companies find in the research activities of their sup- 

 pliers and those from whom they purchase manufactur- 

 ing equipment. Thirtj--eiglit companies stressed partic- 

 ularly the advantages that come tlu-ough the contacts 

 with supplier's engineers or representatives in working 

 out the specifications for raw materials particularly 

 suited to their needs or in the advice given regarding the 

 use of specially designed mechanisms, electrical appara- 

 tus or controls, or the like, which are necessary to the 

 ultimate product but which are foreign to the company's 

 own field of development. Likewise, the technical 

 activities of equipment manufacturers have proved to 

 be a resource to 13 companies where the mechanization 

 of process is becoming more highly specialized. Never- 

 theless, the manufacturing requirements of 14 com- 

 panies were sufficiently unique for them to design their 

 own specialized machines. In 10 cases companies 

 actuallj' built their own machinery. 



Significance of Research to the 

 Small Enterprise 



In brief, the picture presented by the small enterprise 

 is, because of the necessity for uniqueness, that of a 

 concern rendering a specialized technical service to 

 larger units of iiulustry, to discriminating customers, or 

 to selected markets through the manufacture of a 

 distinctive or quality product. This research aspect of 

 such enterprise is strikingly borne out by the intimate 

 customer relationship maintained in almost every 

 instance where the proprietor, the active top executive, 

 or a corps of sales engineers works closely with the 

 engineers in other companies to develop new products 

 or features particularly suited to the latter 's require- 

 ments. Thus research, whatever may be the extent of 

 organized fact-finding, is an indispensable resource to 

 the small company through which it holds its place in 

 the face of competition. 



^liile their executives and teclmical personnel have 

 become experts in some specialized branch of tech- 

 nology tlirough continually having to meet new situa- 

 tions, the circumstances under which the majority of 

 small businesses must operate preclude a long-range 

 policy toward their technical activities and force them 

 to look to the outside to replenish their teclmical 

 resources and to keep abreast of progress in the arts 

 and sciences. Accordingly, in spite of being manifestly 



Figure 13. — Fiber Preparation Laboratory, John A. Manning Paper Company, Incorporated, Troy, New York 



321835 — 41 7 



