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Producer Service Linkages and Industrial Innovation: Results of a Twelve‐Year Tracking Study of New York State Manufacturers

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  • ALAN MACPHERSON

Abstract

ABSTRACT This paper documents the results of a twelve‐year tracking study of New York State (NYS) manufacturers of scientific instruments (1994–2005). The main goal of the tracking exercise was to probe for firm‐level changes in the use of external producer services, notably in technical fields such as industrial design, contract research, and engineering. Another goal was to assess the extent to which these outside inputs have been contributing to the product innovation efforts of users. The results show that innovation and service utilization rates have converged across NYS's three major regions (i.e., Western New York, Upstate/Central, and the New York City metropolitan area). This convergence has been powered by Internet‐based technologies, as well as by strategic management change at the company level. The link between recourse to external technical help and successful innovation is found to be statistically stronger in 2005 than it was twelve years ago. Of special importance is the fact that a growing number of manufacturers have been outsourcing research, design, and product development activities at levels that far exceed those reported in the 1990s. The paper concludes with a brief discussion of the implications of these trends for the geography of innovation within high‐technology sectors.

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  • Alan Macpherson, 2008. "Producer Service Linkages and Industrial Innovation: Results of a Twelve‐Year Tracking Study of New York State Manufacturers," Growth and Change, Wiley Blackwell, vol. 39(1), pages 1-23, March.
    • Handle: RePEc:bla:growch:v:39:y:2008:i:1:p:1-23
    DOI: 10.1111/j.1468-2257.2007.00403.x
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    1. Grant Black, 2005. "The Geography of Small Firm Innovation," International Studies in Entrepreneurship, Springer, number 978-0-306-48745-3, November.
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    2. Martin Andersson & Lina Bjerke & Charlie Karlsson, 2013. "Import Flows: Extraregional Linkages Stimulating Renewal of Regional Sectors?," Environment and Planning A, , vol. 45(12), pages 2999-3017, December.
    3. Shearmur Richard & Doloreux David, 2022. "Innovation, scaling-up, and local development in peripheral regions: do establishments scale-up locally?," ZFW – Advances in Economic Geography, De Gruyter, vol. 66(4), pages 185-200, November.
    4. Chen, Guo & Liu, Yishuang & Gao, Qizheng & Zhang, Jianqing, 2023. "Does regional services development enhance manufacturing firm productivity? A manufacturing servitization perspective," International Review of Economics & Finance, Elsevier, vol. 86(C), pages 451-466.
    5. Martin Falk & Fei Peng, 2013. "The increasing service intensity of European manufacturing," The Service Industries Journal, Taylor & Francis Journals, vol. 33(15-16), pages 1686-1706, December.
    6. François Deltour & Sébastien Le Gall & Virginie Lethiais, 2017. "Innovating not Only in Cities: Evidence from SMEs," Post-Print hal-01758281, HAL.
    7. Patrycjusz Zarębski & Małgorzata Czerwińska-Jaśkiewicz & Maria Klonowska-Matynia, 2022. "Innovation in Peripheral Regions from a Multidimensional Perspective: Evidence from the Middle Pomerania Region in Poland," Sustainability, MDPI, vol. 14(14), pages 1-18, July.
    8. Andrés Barge-Gil & Aurelia Modrego-Rico, 2013. "Relationships Among Technology Institutes and Firms: Are Determining Factors Dependent on the Type of Service Provided?," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 4(4), pages 343-369, December.
    9. Karima Kourtit & Peter Nijkamp & Mark D. Partridge & Janet E. Kohlhase, 2013. "The new urban world 2050: perspectives, prospects and problems," Regional Science Policy & Practice, Wiley Blackwell, vol. 5(2), pages 153-165, June.
    10. Shearmur, Richard & Doloreux, David & Laperrière, Anika, 2015. "Is the degree of internationalization associated with the use of knowledge intensive services or with innovation?," International Business Review, Elsevier, vol. 24(3), pages 457-465.
    11. Huizheng Liu & Xueting Lu & XiuShan Bai, 2023. "Research on the Impact of Producer Service Quality on Export Technological Complexity of Manufacturing Enterprise," Advances in Management and Applied Economics, SCIENPRESS Ltd, vol. 13(5), pages 1-5.
    12. Matthias Firgo & Peter Mayerhofer, 2016. "Wissensintensive Unternehmensdienste, Wissens-Spillovers und regionales Wachstum. Teilprojekt 3: Zur Standortstruktur von wissensintensiven Unternehmensdiensten – Fakten, Bestimmungsgründe, regionalpo," WIFO Studies, WIFO, number 59427.
    13. Winifred Curran, 2010. "In Defense of Old Industrial Spaces: Manufacturing, Creativity and Innovation in Williamsburg, Brooklyn," International Journal of Urban and Regional Research, Wiley Blackwell, vol. 34(4), pages 871-885, December.
    14. Daniel Schiller & Martijn J Burger & Bas Karreman, 2015. "The Functional and Sectoral Division of Labour between Hong Kong and the Pearl River Delta: From Complementarities in Production to Competition in Producer Services?," Environment and Planning A, , vol. 47(1), pages 188-208, January.
    15. Roberta Capello & Camilla Lenzi, 2015. "The Knowledge–Innovation Nexus. Its Spatially Differentiated Returns to Innovation," Growth and Change, Wiley Blackwell, vol. 46(3), pages 379-399, September.
    16. Davide Antonioli & Massimiliano Mazzanti & Sandro Montresor & Paolo Pini, 2015. "Outsourcing and Firm Productivity in a Specific Local Production System: Evidence from Reggio Emilia (Italy)," Growth and Change, Wiley Blackwell, vol. 46(2), pages 292-320, June.

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