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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.

Suggested Citation

  • Amnon Frenkel, 2001. "Barriers and Limitations in the Development of Industrial Innovation in the Region," ERSA conference papers ersa01p38, European Regional Science Association.
  • Handle: RePEc:wiw:wiwrsa:ersa01p38
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    File URL: http://www-sre.wu.ac.at/ersa/ersaconfs/ersa01/papers/full/38.pdf
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    1. Gene M. Grossman & Elhanan Helpman, 1994. "Endogenous Innovation in the Theory of Growth," Journal of Economic Perspectives, American Economic Association, vol. 8(1), pages 23-44, Winter.
    2. Amnon Frenkel, 2000. "Can regional policy affect firms' innovation potential in lagging regions?," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 34(3), pages 315-341.
    3. 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.
    4. Grossman, Gene M & Helpman, Elhanan, 1990. "Trade, Innovation, and Growth," American Economic Review, American Economic Association, vol. 80(2), pages 86-91, May.
    5. Grossman, Gene M & Helpman, Elhanan, 1990. "Comparative Advantage and Long-run Growth," American Economic Review, American Economic Association, vol. 80(4), pages 796-815, September.
    6. Henderson, J. Vernon, 1986. "Efficiency of resource usage and city size," Journal of Urban Economics, Elsevier, vol. 19(1), pages 47-70, January.
    7. Dosi, Giovanni, 1988. "Sources, Procedures, and Microeconomic Effects of Innovation," Journal of Economic Literature, American Economic Association, vol. 26(3), pages 1120-1171, September.
    8. Rosenberg,Nathan, 1994. "Exploring the Black Box," Cambridge Books, Cambridge University Press, number 9780521459556, April.
    9. Davelaar, Evert Jan & Nijkamp, Peter, 1988. "The Incubator Hypothesis: Re-vitalization of Metropolitan Areas?," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 22(3), pages 48-65, November.
    10. Segal, David, 1976. "Are There Returns to Scale in City Size?," The Review of Economics and Statistics, MIT Press, vol. 58(3), pages 339-350, August.
    11. Paul M. Romer, 1994. "The Origins of Endogenous Growth," Journal of Economic Perspectives, American Economic Association, vol. 8(1), pages 3-22, Winter.
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