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Industry and location effects on UK plants' innovation propensity

Author

Listed:
  • Brian Ashcroft

    (Fraser of Allander Institute, University of Strathclyde, Curran Building, 100 Cathedral Street, Glasgow, G4 0LN, UK)

  • Stephen Roper

    (School of Management and Economics, Northern Ireland Economic Research Centre, Queen's University of Belfast, Belfast, BT7 1NN, UK)

  • Stewart Dunlop

    (Fraser of Allander Institute, University of Strathclyde, Curran Building, 100 Cathedral Street, Glasgow, G4 0LN, UK)

  • James H. Love

    (Aston Business School, Aston University, Birmingham B4 7ET, UK)

Abstract

This paper uses UK plant-level survey data to examine the relative importance of industry concentration, technological opportunity and locational factors in determining innovation propensity. The results suggest no evidence that industry concentration has any significant positive effect on innovation. Industries' technological characteristics are important, however, with the potential for industry-specific spill-over effects. Plants' own technological activities in terms of undertaking R&D and having an R&D department were also important determinants of innovation propensity as were plants' participation in technology transfer and inter-firm networks. Strong locational effects were identified relating to industrial composition, the level of R&D activity, external ownership, the preponderance of small firms and the general level of regional prosperity. In addition, strong interactions were evident between plants' R&D activity and their regional environment. Undertaking R&D enabled plants to take advantage of any environmental benefits for innovation and insulated them from potential negative effects.

Suggested Citation

  • Brian Ashcroft & Stephen Roper & Stewart Dunlop & James H. Love, 2000. "Industry and location effects on UK plants' innovation propensity," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 34(4), pages 489-502.
    • Handle: RePEc:spr:anresc:v:34:y:2000:i:4:p:489-502
    Note: Received: February 1998/Accepted: August 1999
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    Citations

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    Cited by:

    1. Yoshihiro Kameyama, 2011. "Effects of Technological Networks of Small and Medium-sized Firms on their R&D Activities in Shihwa Industrial Complex, Korea: Toward Industrial Cluster Formation and Regional Integration," Chapters, in: Akifumi Kuchiki & Masatsugu Tsuji (ed.), Industrial Clusters, Upgrading and Innovation in East Asia, chapter 10, Edward Elgar Publishing.
    2. Dirk Czarnitzki & Hanna Hottenrott, 2009. "Are Local Milieus The Key To Innovation Performance?," Journal of Regional Science, Wiley Blackwell, vol. 49(1), pages 81-112, February.
    3. Neil Lee & Andr�s Rodr�guez-Pose, 2014. "Innovation in Creative Cities: Evidence from British Small Firms," Industry and Innovation, Taylor & Francis Journals, vol. 21(6), pages 494-512, August.
    4. Dirk Crass & Christian Rammer & Birgit Aschhoff, 2019. "Geographical clustering and the effectiveness of public innovation programs," The Journal of Technology Transfer, Springer, vol. 44(6), pages 1784-1815, December.
    5. Neil Lee & Andrés Rodríguez-Pose, 2013. "Original Innovation, Learnt Innovation and Cities: Evidence from UK SMEs," Urban Studies, Urban Studies Journal Limited, vol. 50(9), pages 1742-1759, July.
    6. Stephen Roper & Nola Hewitt-Dundas, 2005. "Assessing the Effectiveness of Innovation Grants – Evidence from the Irish Innovation Panel," ERSA conference papers ersa05p478, European Regional Science Association.
    7. Andrew Copus & Dimitris Skuras & Kyriaki Tsegenidi, 2006. "Innovation and Peripherality: A Comparative Study in Six EU Member Countries," ERSA conference papers ersa06p295, European Regional Science Association.
    8. Nobuaki Hamaguchi & Yoshihiro Kameyama, 2008. "R&D Partnerships and Capability of Innovation of Small and Medium-Sized Firms in Zhongguancun, Beijing: The Power of Proximity," Discussion Paper Series 225, Research Institute for Economics & Business Administration, Kobe University.

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