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Barriers and Limitations in the Development of Industrial Innovation in the Region

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  • AMNON FRENKEL

Abstract

The growing interest in public policy contributing to the expansion of industrial innovation, has become increasingly significant, resulting from the interrelationship between innovation, competitiveness, and economic growth. This article presents the results of an empirical study in identifying the most important barriers to the development of innovation, as ascribed by industrial firms belonging to the high-tech sector alongside the more traditional industries. The data were collected through field survey of industrial firms, located in the Northern region of Israel. A considerable unexpected similarity was identified in the most important factors that constitute barriers to innovation, between the industrial sectors and the different regions investigated. The most significant limitations are those that relate to the high risk involved with the engagement in innovation. The risks are related, on the one hand, to the lack of financial resources, and on the other hand, to the high cost needed for this engagement, thereby affecting the time needed for return on investment. Additionally, the lack of highly skilled workers was also found to be a significant barrier.

Suggested Citation

  • Amnon Frenkel, 2003. "Barriers and Limitations in the Development of Industrial Innovation in the Region," European Planning Studies, Taylor & Francis Journals, vol. 11(2), pages 115-137, March.
    • Handle: RePEc:taf:eurpls:v:11:y:2003:i:2:p:115-137
    DOI: 10.1080/0965431032000072837
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    Cited by:

    1. María Botey Fullat & Pedro Arias Martín & Silverio Alarcón Lorenzo, 2019. "The Economic-Financial Difficulties To Innovate In Spanish Industry," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 23(02), pages 1-23, February.
    2. Świadek, Arkadiusz & Szopik-Depczyńska, Katarzyna, 2015. "Relationships With Suppliers And Innovation Activity In Food Industry In Poland," Journal of Agribusiness and Rural Development, University of Life Sciences, Poznan, Poland, vol. 36(2).
    3. Jakub Tabas & Michaela Beranová & Jan Vavřina, 2011. "Barriers to development of the innovation potential in the small and medium-sized enterprises," Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis, Mendel University Press, vol. 59(7), pages 447-458.
    4. Nick Clifton & Khine S. Kyaw & Zheng Liu & Gary Walpole, 2024. "An Empirical Study on Public Sector versus Third Sector Circular Economy-Oriented Innovations," Sustainability, MDPI, vol. 16(4), pages 1-26, February.
    5. Mohd Nor Hakimin Yusoff & Fakhrul Anwar Zainol, 2014. "Building Innovative Entrepreneur Community: Challenges and Future Outlook," International Journal of Academic Research in Business and Social Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Business and Social Sciences, vol. 4(10), pages 555-564, October.
    6. Björn Alecke & Timo Mitze & Annekatrin Niebuhr, 2021. "Building a bridge over the valley of death? New pathways for innovation policy in structurally weak regions," Review of Regional Research: Jahrbuch für Regionalwissenschaft, Springer;Gesellschaft für Regionalforschung (GfR), vol. 41(2), pages 185-210, October.
    7. Świadek Arkadiusz & Szopik-Depczyńska Katarzyna, 2014. "Changes In Innovation Activity In Regional Industrial System In The Context Of Size Of Enterprises In West Pomeranian Province," Folia Oeconomica Stetinensia, Sciendo, vol. 14(2), pages 225-238, December.
    8. Lee, Lena & Wong, Poh Kam, 2006. "Individual attitudes, organizational reward system and patenting performance of R&D scientists and engineers," MPRA Paper 595, University Library of Munich, Germany.
    9. Arkadiusz Świadek & Jadwiga Gorączkowska & Karolina Godzisz, 2022. "Conditions Driving Eco-Innovation in a Catching-Up Country—ICT vs. Industry in Poland," Energies, MDPI, vol. 15(15), pages 1-21, July.
    10. Jorge Antonio Rangel Magdaleno & Martha Gonzalez Adame & Luis Aguilera Enriquez & Roberto Ezequiel Franco Zesati, 2015. "RELATIONSHIP BETWEEN BARRIERS TO INNOVATION AND KNOWLEDGE MANAGEMENT: EMPIRICAL ANALYSIS OF SMEs MANUFACTURING, RELACION ENTRE BARRERAS A LA INNOVACION Y GESTION DEL CONOCIMIENTO: ANALISIS EMPIRICO PY," Revista Internacional Administracion & Finanzas, The Institute for Business and Finance Research, vol. 8(7), pages 83-93.
    11. Jorge Antonio Rangel Magdaleno & Luis Aguilera Enriquez & Martha Gonzalez Adame, 2015. "The Influence Of Innovation And Financial Information In Competitiveness Of Manufacturing Small And Mediumsized Enterprise, La Influencia De La Innovacion Y La Informacion Financiera En La Competitivi," Revista Internacional Administracion & Finanzas, The Institute for Business and Finance Research, vol. 8(2), pages 105-119.
    12. Tamm, Dorel, 2010. "System failures in public sector innovation support measures: The case of Estonian innovation system and dairy industry," Discourses in Social Market Economy 2010-07, OrdnungsPolitisches Portal (OPO).
    13. Claudia Werker, 2006. "An Assessment of the Regional Innovation Policy by the European Union based on Bibliometrical Analysis," Papers on Economics and Evolution 2006-11, Philipps University Marburg, Department of Geography.
    14. Naz Abdulkareem Arif & Moha Asri Bin Abdullah, 2020. "Problems and Global Challenges of Small and Medium Enterprises (SMEs) in Iran," International Journal of Science and Business, IJSAB International, vol. 4(12), pages 80-92.
    15. Kholoud Sudqi Al-Louzi, 2019. "Reviewing the Concept of Innovation and it relationship with Organizational Innovation: A Literature Review," Journal of Business & Management (COES&RJ-JBM), , vol. 7(4), pages 293-315, October.
    16. Arnaud Le Van, 2020. "Les barrières pour le développement de produits verts et la rentabilité des PME vietnamiennes," Working Papers hal-02482057, HAL.
    17. Daniel Olah & B. Levente Alpek, 2021. "The theoretical model of spatial production for innovation," Journal of Innovation and Entrepreneurship, Springer, vol. 10(1), pages 1-24, December.

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