Abstract
The thesis tries to find out how a resources limited SME ( Small and Medium Enterprise ) could do its R&D activity effectively through a case study on an IC ( Integrated Circuit ) design firm in the silicon valley of Taiwan. The case study covered the starting up stage for finish products designing and sale to strategic collaboration of supply chain. The study would descript the adjustment of the company in various stages. It’s a real practice of management theory including organization, positioning, innovation, supply chain management, design collaboration, and patent mapping strategy. The purpose of the thesis would focus on real practice of management to build a workable model of R&D strategy for SME that not only lead the SME how to survive but also how to construct the sustainable competitive advantage.