It is generally acknowledged that small and medium sized enterprises (SME's) contribute significantly to a country’s economic performance. It is also generally acknowledged that it can be problematic to provide effective, public sector research, development and innovation support for SME's given their size and diversity. It is also considered that vertical cooperation with customers and suppliers is more effective in new product development (NPD) for SME's than horizontal co-operation with research institutions and government agencies. This paper discusses how higher education institutions (HEI's) engaged in design research, can effectively support SME's in NPD by actively participating in the design process whilst simultaneously working with SME's to facilitate the development of knowledge networks local to specific SME's, by acting as an intermediary. A number of design support schemes and specific SME, NPD projects undertaken by the author are used to advocate a participatory intermediation role for HEI's in supporting NPD for SME's
