In Less Developed Countries (LDCs), most graduates from higher institutions of learning are absorbed in the informal sector and/or micro and small enterprises. Knowledge development through training, research and experiential learning may lead to creating or discovering new knowledge/technology or creating new value, by applying knowledge/technology to societal or business challenges. While the Small Manufacturing Enterprises (SMEs) do not have the capacity to develop knowledge through Research and Development (R&D), it is not clear how universities and institutions of higher learning should help bridge this gap. There is need to develop strategies that enhance acquisition and development of technologies among SMEs in LDCs that in turn makes them competitive in the global market. This paper explores the five (I)s Importation, Imitation, Improvement, Innovation and invention in technology acquisition and development by SMEs and the role played by institutions of higher learning in Kenya. The paper establishes significant relationships and concludes that for Kenya and other LDCs to become knowledge based economies, SMEs have to be looped in through empowerment and capacity building, roles universities and institutions of higher learning should brace themselves to undertake. For the SMEs to be innovative and technologically savvy, the five (I) model would come in handy.