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Sources of Increasing Returns and Regional Innovation in the UK

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  • Suma Athreye

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  • David Keeble

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Abstract

This empirical paper investigates the impact of different sources of increasing returns on firm innovative behaviour in different regions of the UK. Of the different sources of increasing returns, the impact of intermediation and the emergence of specialised markets on the probability of innovation is of particular interest to this analysis. The existing literature on regional development in the UK strongly suggests that the South East has many features that may characterise an economy growing with a greater division of labour. These are less evident in the Industrial Heartland region of northern England. Other influences on innovation such as the impact of regional public R&D and dynamic economies to scale due to learning within a firm are also considered.

Suggested Citation

  • Suma Athreye & David Keeble, 2001. "Sources of Increasing Returns and Regional Innovation in the UK," Open Discussion Papers in Economics 30, The Open University, Faculty of Social Sciences, Department of Economics.
  • Handle: RePEc:opn:wpaper:30
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    References listed on IDEAS

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    1. Bryson, John R & Keeble, David & Wood, Peter, 1997. "The Creation and Growth of Small Business Service Firms in Post-industrial Britain," Small Business Economics, Springer, vol. 9(4), pages 345-360, August.
    2. Vivarelli, Marco & Evangelista, Rinaldo & Pianta, Mario, 1996. "Innovation and employment in Italian manufacturing industry," Research Policy, Elsevier, vol. 25(7), pages 1013-1026, October.
    3. P A Wood & J Bryson & D Keeble, 1993. "Regional Patterns of Small Firm Development in the Business Services: Evidence from the United Kingdom," Environment and Planning A, , vol. 25(5), pages 677-700, May.
    4. Suma Athreye & David Keeble, 2001. "Specialised Markets and the Behaviour of Firms: Evidence from the UK's Regional Economies," Open Discussion Papers in Economics 33, The Open University, Faculty of Social Sciences, Department of Economics.
    5. P.N. O'Farrell & D.M. Hitchens & L.A.R. Moffat, 1993. "The Competitiveness of Business Services and Regional Development: Evidence from Scotland and the South East of England," Urban Studies, Urban Studies Journal Limited, vol. 30(10), pages 1629-1652, December.
    6. Dosi, Giovanni, 1988. "Sources, Procedures, and Microeconomic Effects of Innovation," Journal of Economic Literature, American Economic Association, vol. 26(3), pages 1120-1171, September.
    7. Bresnahan, Timothy F & Reiss, Peter C, 1991. "Entry and Competition in Concentrated Markets," Journal of Political Economy, University of Chicago Press, vol. 99(5), pages 977-1009, October.
    8. P A Wood & J Bryson & D Keeble, 1993. "Regional patterns of small firm development in the business services: evidence from the United Kingdom," Environment and Planning A, Pion Ltd, London, vol. 25(5), pages 677-700, May.
    9. Suma Athreye, 1997. "On Markets in Knowledge," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 1(2), pages 231-253, June.
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    Cited by:

    1. Dimitratos, Pavlos & Liouka, Ioanna & Young, Stephen, 2009. "Regional location of multinational corporation subsidiaries and economic development contribution: Evidence from the UK," Journal of World Business, Elsevier, vol. 44(2), pages 180-191, April.
    2. Ghatak, Subrata & Watkins, Rob, 2001. "Small and medium size enterprises: innovation and growth in the UK and Poland," Economics Discussion Papers 2001-3, School of Economics, Kingston University London.

    More about this item

    Keywords

    Increasing returns and growth; specialised markets; public R&D; product innovation by firms; regional innovation; regional development;

    JEL classification:

    • R0 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General
    • R3 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location
    • O3 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights
    • H4 - Public Economics - - Publicly Provided Goods
    • L8 - Industrial Organization - - Industry Studies: Services

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