Research and development carried out within the manufacturing industry is often a key element in ensuring not only the sector's survival but also its competitiveness.
The prime differentiator between firms vying for business, it is among the significant factors which lead to growth.
For one firm operating from premises belonging to Malta Industrial Parks at Corradino Industrial Estate, research and development has led to a consistent stream of premium, cutting edge products that have come to be favoured by the most exigent customers in its market.
Action Frame, the manufacturer of high-tech bicycle frames, produces carbon-fibre frames used by professional athletes at such events as the Giro d'Italia, the Tour de France, and the Olympics. After recently acquiring an Italian brand, the company has won business in European and Asian markets beating global names.
Brothers Andrew and Paul Albanozzo have had a passion for two wheels since childhood. It led them to work with a foreign Malta-based company already involved in the bicycle industry. When it closed down, the Albanozzos, who are from Sliema, decided to set up their own manufacturing firm.
"Loads of research had to be done as a totally different material other than steel and aluminium had to be used if we wanted to find our place in the market, already infested by Asian products at the time," Action Frame's Andrew Albanozzo, a 34-year-old technician, told The Sunday Times. "Research on composite materials led us to where we are today."
Mr Albanozzo explained that composites are engineered materials made from two or more constituent materials with significantly different physical or chemical properties. The materials remain separate on a macroscopic level within the finished structure.
Action Frame uses carbon and arimid fibres and epoxy resins. By focusing on innovative composite materials, the company is able to produce lighter, high- performance bicycles, thanks to new techniques for moulding, design and optimisation.
A few years ago, a newly formed Italian company, Switchbikes, was looking for a partner to help it produce and market high-end, innovative racing bicycles. Action Frames's experience in producing and designing carbon-fibre bikes at the time made it the perfect candidate.
"Over the years, we managed to acquire full ownership of the brand, which has opened the doors to actually selling our own branded products," Mr Albanozzo explained. "This also serves as a showcase for subcontracting with other brands."
Action Frame is just one of several Maltese companies which have upped their game in the research and development stakes.
Last June, Malta Enterprise launched a collection of schemes, including cash grants and tax incentives, to help locally-based companies in their research and development efforts.
The new schemes were designed to complement other Malta Enterprise incentives catering for activities following the research and development phases, such as preparation for production and marketing, and technical feasibility studies.
"Importantly, we have technical staff with experience in industry who are available to discuss the specific project details and guide firms throughout the project duration," Malta Enterprise chairman Alan Camilleri told The Sunday Times.
"We endeavour to assist all companies we come in contact with which have projects that are supported by a good business case. The aim is to instigate more firms to migrate from the importation or manufacturing approach and take control of their products' evolution."
Malta Enterprise has been supportive of the Albanozzos' venture. It has partially funded research and development of a new component in a composite material which Action Frame has in final stages of development. Under its various schemes, the organisation has also facilitated the identification of premises and access to tax incentives and funded Action Frame's participation at overseas trade events.
Mr Camilleri emphasised that in an open market, businesses which are close to their clients and are able to tailor their products to the customers' requirements, sometimes going beyond what is currently offered on the market, have a greater chance of safeguarding and increasing their market share.
"Various local companies are already performing in this manner. We are convinced that many more would derive benefit from doing so," he pointed out.
Mr Albanozzo explained that among their immediate targets, he and Paul, 39, who is a qualified welder and spray painter, were focusing on research and development as the function was essential in fending off competition.
Creating a limited production of high performance and innovative products was their other main priority. Models within the Switchbike range of high-end bicycles retail for anything between €4,000 and €9,000.
Mr Albanozzo conceded that similar-looking, cheaper products with low performance characteristics produced in other countries at lower cost had affected Action Frame's sale price, but the Maltese firm's perseverance and investment in research and development had paid off. Companies resorting to purchasing inferior products realised they had opted for the wrong route over time.
Action Frame's main markets are Italy and France, but Australia and the US are now in its sights. The company, which also produces frames for leading European brands besides Switchbikes, is the only firm on the continent to house the entire production process under one roof.
Mr Albanozzo explained that the products start off as raw carbon or aramid fabrics and epoxy resins which are painstakingly transformed into the finished product - that includes the final paint job which gives each frame model its own identity.
Production is limited to between 500 and 800 a year. Every part of the production process is enormously labour-intensive as each component is practically hand-made.
Action Frame is also in discussions with Malta Enterprise over funding for a future project involving a composite racing motorcycle.
La Dorna, the Spanish federation which organises the Moto GP world championship, has modified technical rules for the 250cc class, stipulating that a common-to-all Honda 600cc, four-cyclinder, four-stroke engine has to be used.
That has presented Action Frame with a unique opportunity.
"Other than the engine and total motorbike weight, all the other parts do not have to be standard and can be constructed by various designers using any material and latest technologies," Mr Albanozzo explained.
"Our goal is to produce the frame, fork and swinging arm in composite materials as this is the best solution to obtain lightness, rigidity and strength."
The wheels of research and development will be set in motion in an entirely new sphere. Technical information on composite motorcycle chassis is scarce so prototypes must be produced progressively. Intensive laboratory and track testing will have to be carried out until the retail target is achieved.