The objective of this project is to gain a better understanding of how small and medium sized enterprises (SMEs) balance research and development (R&D) activities. We explore modern R&D tools and methodologies through literature research. These tools and methodologies are then aligned with “External Variables and Internal Conditions” as identified by Keizer et al. and a framework is created. [10] This framework is applied to two case studies. The first case study examines HECO, the Hawaiian Electric company, representing a small enterprise. The second case study examines Logitech Inc, a consumer electronics company, representing a medium enterprise. The results of this analysis show that the proposed framework for understanding SME R&D programs is viable. Both case studies provided examples of the variables, challenges and opportunities faced by small and medium sized R&D programs. Areas for future research include a stronger understanding of the impact of education, motivation and experience on the output of an R&D organization and the flaws in the current funding system for energy research
