Firms in Scottish High Technology Clusters: software, life sciences, microelectronics, optoelectronics and digital media – preliminary evidence and analysis on firm size, growth and optimality
AbstractThis paper reports on: (a) new primary source evidence on; and (b) statistical and econometric analysis of high technology clusters in Scotland. It focuses on the following sectors: software, life sciences, microelectronics, optoelectronics, and digital media. Evidence on a postal and e-mailed questionnaire is presented and discussed under the headings of: performance, resources, collaboration & cooperation, embeddedness, and innovation. The sampled firms are characterised as being small (viz. micro-firms and SMEs), knowledge intensive (largely graduate staff), research intensive (mean spend on R&D GBP 842k), and internationalised (mainly selling to markets beyond Europe). Preliminary statistical evidence is presented on Gibrat’s Law (independence of growth and size) and the Schumpeterian Hypothesis (scale economies in R&D). Estimates suggest a short-run equilibrium size of just 100 employees, but a long-run equilibrium size of 1000 employees. Further, to achieve the Schumpeterian effect (of marked scale economies in R&D), estimates suggest that firms have to grow to very much larger sizes of beyond 3,000 employees. We argue that the principal way of achieving the latter scale may need to be by takeovers and mergers, rather than by internally driven growth
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Centre for Research into Industry, Enterprise, Finance and the Firm in its series CRIEFF Discussion Papers with number 0804.
Date of creation: May 2008
Date of revision:
Contact details of provider:
Postal: School of Economics and Finance, University of St. Andrews, Fife KY16 9AL
Phone: 01334 462420
Fax: 01334 462438
Web page: http://crieff.wordpress.com/
More information through EDIRC
High technology; Scottish firms; Gibrat’s Law; the Schumpeterian Hypothesis.;
Other versions of this item:
- Reid, Gavin C & Ujjual, Vandana, 2008. "Firms in Scottish High Technology Clusters: software, life sciences, microelectronics, optoelectronics and digital media – preliminary evidence and analysis on firm size, growth and optimality," SIRE Discussion Papers 2008-41, Scottish Institute for Research in Economics (SIRE).
- O18 - Economic Development, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
- O31 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
- O34 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - Intellectual Property and Intellectual Capital
- O38 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - Government Policy
This paper has been announced in the following NEP Reports:
- NEP-ALL-2008-05-24 (All new papers)
- NEP-COM-2008-05-24 (Industrial Competition)
- NEP-INO-2008-05-24 (Innovation)
- NEP-IPR-2008-05-24 (Intellectual Property Rights)
- NEP-KNM-2008-05-24 (Knowledge Management & Knowledge Economy)
- NEP-MIC-2008-05-24 (Microeconomics)
- NEP-TID-2008-05-24 (Technology & Industrial Dynamics)
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.:
- Romijn, Henny & Albaladejo, Manuel, 2002. "Determinants of innovation capability in small electronics and software firms in southeast England," Research Policy, Elsevier, vol. 31(7), pages 1053-1067, September.
- Gavin C Reid & Pamela A Siler & Julia A Smith, 1994. "Quality of Patenting in the UK Scientific Instruments Industry: Database Construction," CRIEFF Discussion Papers 9412, Centre for Research into Industry, Enterprise, Finance and the Firm.
- Philip Mccann, 1997. "How Deeply Embedded is Silicon Glen? A Cautionary Note," Regional Studies, Taylor & Francis Journals, vol. 31(7), pages 695-703.
- Kohn, Meir & Scott, John T, 1982. "Scale Economies in Research and Development: The Schumpeterian Hypothesis," Journal of Industrial Economics, Wiley Blackwell, vol. 30(3), pages 239-49, March.
- Tether, B. S. & Storey, D. J., 1998. "Smaller firms and Europe's high technology sectors: a framework for analysis and some statistical evidence," Research Policy, Elsevier, vol. 26(9), pages 947-971, April.
- Janz, Norbert & Lööf, Hans & Peters, Bettina, 2004.
"Firm Level Innovation and Productivity - Is there a Common Story Across Countries?,"
Working Paper Series in Economics and Institutions of Innovation
24, Royal Institute of Technology, CESIS - Centre of Excellence for Science and Innovation Studies.
- Peters, Bettina & Lööf, Hans & Janz, Norbert, 2003. "Firm Level Innovation and Productivity: Is there a Common Story Across Countries?," ZEW Discussion Papers 03-26, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
- F. M. Fisher & P. Temin, 1971.
"Returns-to-Scale in Research and Development: What Does the Schupeterian Hypothesis Imply?,"
74, Massachusetts Institute of Technology (MIT), Department of Economics.
- Fisher, Franklin M & Temin, Peter, 1973. "Returns to Scale in Research and Development: What Does the Schumpeterian Hypothesis Imply ?," Journal of Political Economy, University of Chicago Press, vol. 81(1), pages 56-70, Jan.-Feb..
- Arnoud Lagendijk, 1999. "The Emergence of Knowledge-Oriented Forms of Regional Policy in Europe," Tijdschrift voor Economische en Sociale Geografie, Royal Dutch Geographical Society KNAG, vol. 90(1), pages 110-116, 02.
- Benfratello, Luigi & Sembenelli, Alessandro, 2002. "Research joint ventures and firm level performance," Research Policy, Elsevier, vol. 31(4), pages 493-507, May.
- Kaufmann, Alexander & Tödtling, Franz, 2000.
"Science-Industry Interaction In The Process Of Innovation - The Importance Of Boundary-Crossing Between Systems,"
ERSA conference papers
ersa00p428, European Regional Science Association.
- Kaufmann, Alexander & Todtling, Franz, 2001. "Science-industry interaction in the process of innovation: the importance of boundary-crossing between systems," Research Policy, Elsevier, vol. 30(5), pages 791-804, May.
- Loeb, Peter D & Lin, Vincent, 1977. "Research and Development in the Pharmaceutical Industry-A Specification Error Approach," Journal of Industrial Economics, Wiley Blackwell, vol. 26(1), pages 45-51, September.
- Richard N. Langlois, 2002. "Schumpeter and the Obsolescence of the Entrepreneur," Working papers 2002-19, University of Connecticut, Department of Economics.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Bram Boskamp).
If references are entirely missing, you can add them using this form.