1) The document discusses how small international startups can leverage local networks, including networks with multinational corporations (MNCs). 2) It provides examples of how MNCs have partnered with small startups in beneficial ways, such as helping them develop new products or technologies. However, it also notes potential barriers in collaborations due to concerns about autonomy, acquisition, or lack of attention from MNCs. 3) A survey of over 100 small Scottish firms found some perceived MNCs as opportunities for technology absorption but also as acquisition threats, and that intermediaries could help facilitate linkages between small and large firms.

1. How international start-ups leverage networks in their own backyard Dr Shameen Prashantham

2. Background Insights from Doctoral Research (2002-5)

4. Building the Knowledge Base

5. Leveraging networks proactively Proactive networker 3% Non- networker 52% Low Effective networker 29% Passive networker 16% High High Low Stock of network relationships Leverage of network relationships (e.g. for information)

8. Follow-up Research (2005-8) SME-MNC Links

9. Recognizing the Opportunity Polaroid / Wide Blue Providing a helping hand Spin-off support Sun Microsystems / RFID start-ups Grow subsidiary mandate Capability demonstration EDS / Arnlea Enhanced innovation Technology absorption Microsoft / ISV partners Greater sales Technology evangelization IBM / Innovation Perceived as responsible Corporate citizenship Example Rationale Motivation

10. Overcoming the Obstacles “ The plug may be pulled at any time” Autonomy “ Big fish want control over the small fish” Acquisition “ Unhappy doing business with small firms in the long term” Asymmetry “ Collaboration is no one’s day job” Attention “ The problem is getting access to decision-makers” Access Typical sentiments Concern