This paper examines some of the challenges of implementing design-led technologies, such as computer-aided design (CAD), in the context of small manufacturing companies. The research is based on university-company collaborations in the UK using the Knowledge Transfer Partnership (KTP) model, and the paper adopts a case-study approach based on three such partnerships. The authors assess the operational impact of design-led technologies in three key areas: lead times, project costs and product quality. The general design-based challenges are evaluated by examining the management and new product development culture in small manufacturing companies.