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Industrial diversity and innovation spillovers: dynamic innovation and adoption

Author

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  • Philip Amison
  • David Bailey

Abstract

This paper explores the links between open innovation and the emergence of a phoenix industry – the low carbon vehicles sector - in the UK’s traditional automotive heartland, focusing on the West Midlands region. It highlights three major factors in driving the development of this ‘phoenix’ industry at a regional level. Firstly, it highlights the role of ‘open innovation’ approaches in driving the sector, for example noting that smaller firms can sometimes innovate more quickly/more cheaply than the major auto firms; the increased interaction across technologies, up and down supply chains and between larger and smaller firms. In so doing, it also notes the role of hybrid firms providing services, plus prototyping/low volume manufacturing (largely in niche vehicles) and the transferability of these competences across industrial sectors. Secondly, it points to the role of historic (and relatively immobile) investments in the region, for example the past/ongoing importance of established mass producers, the depth of skills and experience in suppliers and in the local workforce; and cross-overs with the overlapping motorsport cluster. Finally, it stresses the role of public-private sector cooperation, such as: the establishment of the Automotive Council UK and its work in developing technology roadmaps, informing regulation, and supporting development of the UK supply chain (a type of industrial policy as a discovery process and in line with ‘smart specialisation’ principles); the R&D funding programmes developed with industry input; and the earlier role of the Regional Development Agency. Overall, it points to the possibilities of building smart specialisation strategies and industrial policies which are aligned with ‘high-road strategies’.

Suggested Citation

  • Philip Amison & David Bailey, 2013. "Industrial diversity and innovation spillovers: dynamic innovation and adoption," WWWforEurope Working Papers series 45, WWWforEurope.
  • Handle: RePEc:feu:wfewop:y:2013:m:11:d:0:i:45
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    File URL: http://www.foreurope.eu/fileadmin/documents/pdf/Workingpapers/WWWforEurope_WPS_no045_MS68.pdf
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    References listed on IDEAS

    as
    1. Rodrik, Dani, 2004. "Industrial Policy for the Twenty-First Century," CEPR Discussion Papers 4767, C.E.P.R. Discussion Papers.
    2. David Sadler, 2004. "Cluster Evolution, the Transformation of Old Industrial Regions and the Steel Industry Supply Chain in North East England," Regional Studies, Taylor & Francis Journals, vol. 38(1), pages 55-66.
    3. Ron Martin & Peter Sunley, 2006. "Path dependence and regional economic evolution," Journal of Economic Geography, Oxford University Press, vol. 6(4), pages 395-437, August.
    4. Koen Frenken & Frank Van Oort & Thijs Verburg, 2007. "Related Variety, Unrelated Variety and Regional Economic Growth," Regional Studies, Taylor & Francis Journals, vol. 41(5), pages 685-697.
    5. Karl Aiginger, 2007. "Industrial Policy: A Dying Breed or A Re-emerging Phoenix," Journal of Industry, Competition and Trade, Springer, vol. 7(3), pages 297-323, December.
    Full references (including those not matched with items on IDEAS)

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    Cited by:

    1. repec:feu:wfedel:y:2016:m:2:d:0:i:12 is not listed on IDEAS
    2. Lisa De Propris & Abdelillah Hamdouch, 2013. "Editorial: Regions as Knowledge and Innovative Hubs," Regional Studies, Taylor & Francis Journals, vol. 47(7), pages 997-1000, July.
    3. repec:wfo:wstudy:58911 is not listed on IDEAS

    More about this item

    Keywords

    Clusters; ecological innovation; high road strategy; industrial policy; innovation policy; new technologies; post-industrialisation;

    JEL classification:

    • O3 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

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