Facilitating Innovation in Opto-Electronics in a National, Global, and Regional Context

During the past twenty years, the emphasis of policy towards high-technology industry has shifted from national innovation systems to take account of globalisation and the formation of regional clusters. Support for high-technology sectors now takes place at a number of levels—regional, national, and international. However, the extent to which firms operate in these three arenas, and how relevant government action is for the needs and behaviour of firms in respect of these is open to question. The paper reports on a study into innovation in Germany and the United Kingdom, in a particular industry—opto-electronics—which has a highly global character, but is also characterised by concentrations of firms in clusters. The contrasting experiences of firms in two regions—Wales and Thuringia—and the different policy emphasis of the regional government provide a test for the relevance, appropriateness, and impact of government policies towards high-technology industry. By focusing on the experiences of innovating firms, the authors provide a conceptually rich understanding of innovation in terms of two processes, which are often conflated in public policy—stimulating knowledge and technology transfer, and providing resource support. The paper concludes with a suggestion that support for innovation needs to be based around the twin concepts of redundancy and systems thinking, and a series of questions policymakers need to keep in mind are proposed.