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

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  • Amnon Frenkel

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    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. Thus, the identification of barriers and limitations hindering the success of innovation will define the principles on which efficient and successful public policy must be based. This paper presents the results of an empirical study aimed at identifying the most significant barriers to the development of innovation, as ascribed by industrial firms belonging to the hi-tech sector, alongside more traditional industries. The data was collected through a field survey of industrial firms located in the Northern region of Israel, covering two different sub-regions: the metropolitan core and the periphery. The study also investigated the differences between the industrial sectors (hi-tech vs. traditional and type of region (metropolitan vs. periphery) with regard to the importance ascribed to the various barriers. A considerable similarity was identified between the industrial sectors and the different regions investigated, with regard to the most significant factors acting as barriers that slow down or all together stop innovative projects. These findings could facilitate in the design of a comprehensive policy in order to minimize the negative impact of such barriers on the expansion of industrial innovation.

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    File URL: http://www-sre.wu-wien.ac.at/ersa/ersaconfs/ersa01/papers/full/38.pdf
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    Bibliographic Info

    Paper provided by European Regional Science Association in its series ERSA conference papers with number ersa01p38.

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    Date of creation: Aug 2001
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    Handle: RePEc:wiw:wiwrsa:ersa01p38

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    1. Stephen Roper & Amnon Frenkel, 2000. "Different paths to success—the growth of the electronics sector in Ireland and Israel," Environment and Planning C: Government and Policy, Pion Ltd, London, vol. 18(6), pages 651-665, December.
    2. Dosi, Giovanni, 1988. "Sources, Procedures, and Microeconomic Effects of Innovation," Journal of Economic Literature, American Economic Association, vol. 26(3), pages 1120-71, September.
    3. Henderson, J. Vernon, 1986. "Efficiency of resource usage and city size," Journal of Urban Economics, Elsevier, vol. 19(1), pages 47-70, January.
    4. Paul M. Romer, 1994. "The Origins of Endogenous Growth," Journal of Economic Perspectives, American Economic Association, vol. 8(1), pages 3-22, Winter.
    5. Segal, David, 1976. "Are There Returns to Scale in City Size?," The Review of Economics and Statistics, MIT Press, vol. 58(3), pages 339-50, August.
    6. Davelaar, E.J. & Nijkamp, P., 1986. "The incubator hypothesis : re-vitalization of metropolitan areas?," Serie Research Memoranda 0047, VU University Amsterdam, Faculty of Economics, Business Administration and Econometrics.
    7. Paul M Romer, 1999. "Endogenous Technological Change," Levine's Working Paper Archive 2135, David K. Levine.
    8. Amnon Frenkel, 2000. "Can regional policy affect firms' innovation potential in lagging regions?," The Annals of Regional Science, Springer, vol. 34(3), pages 315-341.
    9. Grossman, G.M. & Helpman, E., 1988. "Comparative Advantage And Long-Run Growth," Papers 39-88, Tel Aviv.
    10. Gene M. Grossman & Elhanan Helpman, 1993. "Endogenous Innovation in the Theory of Growth," NBER Working Papers 4527, National Bureau of Economic Research, Inc.
    11. Grossman, G.M. & Helpman, E., 1989. "Trade; Innovation; And Growth," Papers 154, Princeton, Woodrow Wilson School - Public and International Affairs.
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