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The role of university-based industrial extension services in the business performance of small manufacturing firms: case-study evidence from Western New York

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  • Alan Macpherson
  • Michael Ziolkowski

Abstract

This paper investigates the role of university-based industrial extension services in the business performance of small manufacturing firms in an economically declining region of the United States (Western New York). The outreach initiatives of a specific University at Buffalo (UB) programme are described. Particular attention is given to the activities of UB's Centre for Industrial Effectiveness (CIE), an outreach unit with a mandate to improve the product and/or process development efforts of local manufacturing firms. Our data suggest positive returns on investment for firms that have sought technical support under CIE programmes. A key finding is that CIE's services typically entail the transmission of well-established procedures rather than radically new ways of doing things. A further finding is that firms that have used CIE to develop improved products have experienced stronger investment returns than their counterparts that have focused upon process development (although the returns are positive in both instances). More broadly, our data suggest positive correlations between levels of project investment and a variety of commercial outcomes, including sales growth, job-retention, and unit-cost reduction. The implications of these results for regional economic development policy are discussed. The paper also reviews some of the weaknesses that curtail the effectiveness of university-based centres such as CIE.

Suggested Citation

  • Alan Macpherson & Michael Ziolkowski, 2005. "The role of university-based industrial extension services in the business performance of small manufacturing firms: case-study evidence from Western New York," Entrepreneurship & Regional Development, Taylor & Francis Journals, vol. 17(6), pages 431-447, November.
    • Handle: RePEc:taf:entreg:v:17:y:2005:i:6:p:431-447
    DOI: 10.1080/08985620500385601
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    Cited by:

    1. Sanni, Maruf, 2018. "Drivers of eco-innovation in the manufacturing sector of Nigeria," Technological Forecasting and Social Change, Elsevier, vol. 131(C), pages 303-314.
    2. Santamara, Llus & Nieto, Mara Jess & Barge-Gil, Andrs, 2009. "Beyond formal R&D: Taking advantage of other sources of innovation in low- and medium-technology industries," Research Policy, Elsevier, vol. 38(3), pages 507-517, April.
    3. Luiz Antonio de Camargo Guerrazzi & Fernando Antonio Ribeiro Serra & Manuel Portugal Ferreira & Vanessa Vasconcelos Scazziota, 2022. "Using Meta-Analytic Structural Equation Modelling to Advance Entrepreneurship Research: A Study on the Liabilities of Newness and Smallness," Journal of Entrepreneurship and Innovation in Emerging Economies, Entrepreneurship Development Institute of India, vol. 31(3), pages 603-631, November.
    4. Luís Pinheiro & Aurora A.C. Teixeira, 2010. "Bridging University-Firm And Open Innovation Literature: A Critical Synthesis," Portuguese Journal of Management Studies, ISEG, Universidade de Lisboa, vol. 0(3), pages 259-279.
    5. Sengupta, Abhijit & Ray, Amit S., 2017. "University research and knowledge transfer: A dynamic view of ambidexterity in british universities," Research Policy, Elsevier, vol. 46(5), pages 881-897.
    6. Garcia-Perez-de-Lema, Domingo & Madrid-Guijarro, Antonia & Martin, Dominique Philippe, 2017. "Influence of university–firm governance on SMEs innovation and performance levels," Technological Forecasting and Social Change, Elsevier, vol. 123(C), pages 250-261.

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