Abstract
In order to promote and understand the feasibility of cooperative research between an SME (Small and Medium-sized enterprise) and University, the author in this study analyzed the progress of a cooperative research scheme between a company and a university and examined its necessity. The study shows that most of the cooperative researches between an SME and a university have been initiated by the SME in order to solve a technical problem of a new product. This is called "needs oriented" research.
Therefore, the first step should be to promote "needs oriented" cooperative research, in order to activate the collaboration between an SME and the university. For that purpose, encouragement of talent in SMEs and universities by MOT education must be effective. In addition, a support system and staff provided by the local government are needed to assist a new business to progress from the research stage to the commercial stage.
