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Abstract
Many regions in Western Europe have set up technology transfer agencies in order to support endogenous potential by encouraging the diffusion of new technologies from universities and large firms to small and medium‐sized enterprises (SMEs). However, many studies have shown that business partners such as customers and suppliers are the most important partners for the stimulation of the innovativeness of SMEs. Universities and transfer agencies are given a very low rank in these studies. These results have led to doubts about the usefulness of these institutions for regional economic development. In order to increase transparency, streamlining of the agencies involved is necessary so that there are fewer actors and more cooperation between them. To be able to reach technology‐following SMEs, at least one transfer organization in every region should employ senior engineers with extensive business experience to visit firms frequently (proactive) to help them come up with some technological issues (demand‐oriented). These agencies need long‐term financial backing so as to provide free advice to technology‐following SMEs.
