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Innovations and R & D in Northern Ireland Manufacturing: A Schumpeterian Approach

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Author Info
Richard Harris
Mary Trainor

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Abstract

HARRIS R. and TRAINOR M. (1995) Innovations and R & D in Northern Ireland manufacturing: a Schumpeterian approach, Reg. Studies 29, 593--604. Given the importance of R & D and innovative outputs, and the change in regional policy in the 1980s to encourage an enterprise culture based inter alia on a high rate of innovations, this paper attempts to explain the determinants of inventive activities in one of the most disadvantaged regions of the United Kingdom. A model incorporating the impact of market structure is estimated and it is found that, in Northern Ireland, higher R & D spending leads to a higher probability of innovating, while R & D itself is positively affected by higher post-innovation price-cost margins. Thus, R & D spending and innovation outputs are beneficial to profitability and thus presumably the long-term growth of firms. However, while market structure is important, the direct effects of monopoly power are, if anything, negative. Thus, the results presented by GEROSKI, 1990, are supported. HARRIS R. et TRAINOR M. (1995) Les innovations et la Recherche-Développement dans l'industrie en Irlande du Nord: une façon d'après Schumpeter, Reg. Studies 29, 593--604. Vu l'importance de la R et D et des innovations, et étant donné l'évolution de la politique régionale aux années 80 afin d'encourager l'esprit d'entreprise fondé, entre autres, sur un taux d'innovation élevé, cet article cherche à expliquer les déterminants de l'innovation dans l'une des régions les plus défavorisées au Royaume-Uni. Un modèle qui comporte l'impact de la structure de marché est estimé, et il s'avère qu'en Irlande du Nord des dépenses de R et D plus importantes entraînent une plus grande probabilité d'innovation, tandis que la R et D elle-même est influée de façon positive par des marges de prix/coûts plus élevées suite à l'innovation. Ainsi les dépenses affectées à la R et D sont favorables à la rentabilité et, on suppose donc, à la croissance à long terme des entreprises. Toujours est-il que, bien que la structure du marché soit importante, les effets directs du pouvoir monopolistique sont, au contraire, négatifs. Par la suite, on vient à l'appui des résultats de GEROSKI, 1990. HARRIS R. und TRAINOR M. (1995) Innovation und Forschung und Entwicklung (R & D) in der industriellen Produktion Nordirlands: ein schumpeterischer Ansatz, Reg. Studies 29, 593--604. Bei der Bedeutung von R & D und innovativer Leistung sowie dem Wandel in der Regionalpolitik der achtziger Jahre, eine Unternehmerkultur zu ermutigen, die sich unter anderem vermehrt auf eine hohe Innovations-rate stützt, versucht dieser Aufsatz, die bestimmenden Faktoren erfinderischer Tätigkeiten in einer der benachteiligsten Regionen des Vereinigten Königreichs zu erläutern. Unter Einbezug der Auswirkung der Marktstruktur wird ein Modell berechnet, wobei sich herausstellt, daß in Nordirland höhere Ausgaben für R & D mit größerer Wahrscheinlichkeit zu Innovation führte, während R & D selbst von höheren Preis-Kostenspannen infolge von Innovation günstig beeinflußt wird. So erweisen sich Ausgaben für R & D und Innovationsleistungen als der Profitabilität nützlich und damit vermutlich auch dem langfristigen Wachstum von Firmen. Obschon die Struktur des Marktes von Bedeutung ist üben die direkten Auswirkungen der Monopolmacht, wenn über-haupt, einen negativen Einfluß aus. Die von GEROSKI, 1990, erzielten Ergebnisse werden somit bestätigt.

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Publisher Info
Article provided by Taylor and Francis Journals in its journal Regional Studies.

Volume (Year): 29 (2005)
Issue (Month): 7 (April)
Pages: 593-604
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Handle: RePEc:taf:regstd:v:29:y:2005:i:7:p:593-604

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Keywords: Innovations; R & D; Northern Ireland;

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Richard Harrison & Mark Hart, 1990. "The Nature and Extent of Innovative Activity in a Peripheral Regional Economy," Regional Studies, Taylor and Francis Journals, vol. 24(5), pages 383-393, October. [Downloadable!] (restricted)
  2. Paul Geroski & Steve Machin & John Van Reenen, 1993. "The Profitability of Innovating Firms," RAND Journal of Economics, The RAND Corporation, vol. 24(2), pages 198-211, Summer. [Downloadable!] (restricted)
  3. R. I. D. Harris, 1988. "Technological Change and Regional Development in the UK: Evidence from the SPRU Database on Innovations," Regional Studies, Taylor and Francis Journals, vol. 22(5), pages 361-374, October. [Downloadable!] (restricted)
  4. Acs, Zoltan J & Audretsch, David B, 1988. "Innovation in Large and Small Firms: An Empirical Analysis," American Economic Review, American Economic Association, vol. 78(4), pages 678-90, September. [Downloadable!] (restricted)
  5. Cohen, Wesley M & Klepper, Steven, 1992. "The Anatomy of Industry R&D Intensity Distributions," American Economic Review, American Economic Association, vol. 82(4), pages 773-99, September. [Downloadable!] (restricted)
  6. J.R.L. Howells, 1984. "The location of research and development: Some observations and evidence from Britain," Regional Studies, Taylor and Francis Journals, vol. 18(1), pages 13-29, February. [Downloadable!] (restricted)
  7. R.P. Oakey & A.T. Thwaites & P.A. Nash, 1980. "The regional distribution of innovative manufacturing establishments in Britain," Regional Studies, Taylor and Francis Journals, vol. 14(3), pages 235-253, June. [Downloadable!] (restricted)
  8. Harris, R I D, 1991. "Technology and Regional Policy: A Case Study of Northern Ireland," Applied Economics, Taylor and Francis Journals, vol. 23(4A), pages 685-95, Part A, A.
  9. Smith, Richard J & Blundell, Richard W, 1986. "An Exogeneity Test for a Simultaneous Equation Tobit Model with an Application to Labor Supply," Econometrica, Econometric Society, vol. 54(3), pages 679-85, May. [Downloadable!] (restricted)
Full references

Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Stephen Roper, 2005. "Cross-Border and Local Cooperation on the island of Ireland - A Behavioural Perspective," ERSA conference papers ersa05p475, European Regional Science Association. [Downloadable!]
  2. James Love & Stephen Roper, 1999. "The Determinants of Innovation: R & D, Technology Transfer and Networking Effects," Review of Industrial Organization, Springer, vol. 15(1), pages 43-64, August. [Downloadable!] (restricted)
    Other versions:
  3. Keld Laursen & Volker Mahnke, . "Knowledge strategies, firm types, and complementarity in human-resource practices," IVS/CBS Working Papers 00-8, Department of Industrial Economics and Strategy, Copenhagen Business School. [Downloadable!]
  4. Love, J.H. & Roper, S., 1999. "Scale, Appropriability Conditions, and the Organisation of R&D," Working Papers NIERC. 42, Economic Research Institute of Northern Ireland. [Downloadable!]
  5. Stephen Roper, 2001. "Benchmarking Regional Innovation: A Comparison of Bavaria, Northern Ireland and the Republic of Ireland," ERSA conference papers ersa01p39, European Regional Science Association. [Downloadable!]
  6. Keld Laursen & Nicolai J. Foss, . "New HRM Practices, Complementarities, and the Impact on Innovation Performance," IVS/CBS Working Papers 00-5, Department of Industrial Economics and Strategy, Copenhagen Business School. [Downloadable!]
  7. Roper, S., 2000. "Benchmarking Regional Innovation: A Comparison of Baden-Wurttemberg, Bavaria, Northern Ireland and Republic of Ireland," Working Papers NIERC. 56, Economic Research Institute of Northern Ireland. [Downloadable!]
  8. Love, James H. & Roper, Stephen, 2000. "Location And Network Effects On Innovation Success: Evidence For Uk, German And Irish Manufacturing Firms," ERSA conference papers ersa00p67, European Regional Science Association. [Downloadable!]
  9. James H. Love & Stephen Roper, 2002. "Internal Versus External R&D: A Study of R&D Choice with Sample Selection," International Journal of the Economics of Business, Taylor and Francis Journals, vol. 9(2), pages 239-255, July. [Downloadable!] (restricted)
  10. Stephen Roper & Nola Hewitt-Dundas & James H Love, 2003. "An Ex Ante Evaluation Framework for the Regional Impact of Publicly Supported R&D Projects," ERSA conference papers ersa03p100, European Regional Science Association. [Downloadable!]
  11. Love, J. & Roper, S., 1999. "Location and Network Effects on Innovation Success: Evidence for UK, German and Irish Manufacturing Plants," Working Papers NIERC. 44, Economic Research Institute of Northern Ireland. [Downloadable!]
    Other versions:
  12. 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. [Downloadable!]
  13. Roper, Stephen & Smallbone, David & Vickers, Ian & North, David & Hewitt-Dundas, Nola, 2002. "Innovation and business performance - a provisional multi-regional analysis," ERSA conference papers ersa02p365, European Regional Science Association. [Downloadable!]
  14. Roper, S., 1998. "Innovation, Networks and Plant Location: Some Evidence for Ireland," Working Papers NIERC. 37, Economic Research Institute of Northern Ireland. [Downloadable!]
    Other versions:
  15. Nola Hewitt-Dundas & Ciara Leonard, 2005. "Embracing a systems perspective of innovation – Evidence from Ireland on the use of innovation links, 1991 to 2002," ERSA conference papers ersa05p608, European Regional Science Association. [Downloadable!]
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