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Innovation patterns and location of European low- and medium-technology industries

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  • Heidenreich, Martin
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    Abstract

    Does a specific innovation pattern of low- and medium-low-technology (LMT) industries exist, and if so, can this pattern be the basis for autonomous, economically successful development? This study based on Fourth Community Innovation Survey (CIS4) data finds, as predicted by Pavitt [Pavitt, K., 1984. Sectoral patterns of technical change: towards a taxonomy and a theory. Research Policy 13, 343-373], that LMT industries are characterised by process, organisational and marketing innovations, by weak internal innovation capabilities and by strong dependencies on the external provision of machines, equipment and software. Suppliers are the most important source for their information and knowledge. On the one hand, firms in LMT industries are an essential pillar of advanced industrial regions. On the other hand, an alternative growth path-based predominantly on LMT industries does not appear to exist. LMT industries are shrinking in Western Europe and companies in these industries are relocating to Eastern Europe. In general, regions with a high proportion of LMT industries have a lower gross domestic product, though so do regions with high proportions of high- and medium-high-technology industries. The economic potential of regions specialised in knowledge-intensive services and characterised by high employment rates and qualified employees is higher than that of industrial regions.

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    Bibliographic Info

    Article provided by Elsevier in its journal Research Policy.

    Volume (Year): 38 (2009)
    Issue (Month): 3 (April)
    Pages: 483-494

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    Handle: RePEc:eee:respol:v:38:y:2009:i:3:p:483-494

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    Web page: http://www.elsevier.com/locate/respol

    Related research

    Keywords: Innovation Low-technology industries Regional development Supplier-dominated firms CIS4 data;

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    References

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    Cited by:
    1. Michaela Trippl, 2011. "Low-Tech Innovation in a High-Tech Environment? The Food Industry in the Metropolitan Region of Vienna," ERSA conference papers ersa10p133, European Regional Science Association.
    2. Francisco Rebelo & Ester Gomes da Silva, 2013. "Export variety, technological content and economic performance: The case of Portugal," Papers in Evolutionary Economic Geography (PEEG) 1310, Utrecht University, Section of Economic Geography, revised Jun 2013.
    3. José Albors-Garrigos & José L. Hervas-Oliver, 2011. "Making sense of innovation by R&D and non-R&D innovators in low technology contexts: a forgotten lesson for policymakers," Working Papers. Serie EC 2011-06, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie).
    4. Hung, Shiu-Wan & Wang, An-Pang, 2012. "Entrepreneurs with glamour? DEA performance characterization of high-tech and older-established industries," Economic Modelling, Elsevier, vol. 29(4), pages 1146-1153.
    5. José Barbero & José Casillas & Mike Wright & Alicia Ramos Garcia, 2014. "Do different types of incubators produce different types of innovations?," The Journal of Technology Transfer, Springer, vol. 39(2), pages 151-168, April.
    6. Forsman, Helena, 2011. "Innovation capacity and innovation development in small enterprises. A comparison between the manufacturing and service sectors," Research Policy, Elsevier, vol. 40(5), pages 739-750, June.
    7. Ana Paula Faria & Natália Barbosa & Vasco Eiriz, 2013. "Firms’ innovation across regions: an exploratory study," NIPE Working Papers 12/2013, NIPE - Universidade do Minho.
    8. Ewa Balcerowicz & Marek Peczkowski & Anna Wziatek-Kubiak, 2009. "The Innovation Patterns of Firms in Low and High Technology Manufacturing Sectors in the New Member States," CASE Network Studies and Analyses 0390, CASE-Center for Social and Economic Research.
    9. Mate-Sanchez-Val, Mariluz & Harris, Richard, 2014. "Differential empirical innovation factors for Spain and the UK," Research Policy, Elsevier, vol. 43(2), pages 451-463.
    10. Michaela Trippl, 2010. "Low_Tech Innovation in a High-Tech Environment? The Case of the Food Industry in the Vienna Metropolitan Region," SRE-Disc sre-disc-2010_02, Institute for the Environment and Regional Development, Department of Socioeconomics, Vienna University of Economics and Business.

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