Mary Trainor

Innovations and R & D in Northern Ireland Manufacturing: A Schumpeterian Approach

HARRIS R. and TRAINOR M. (1995) Innovations and R & D in Northern Ireland manufacturing: a Schumpeterian approach, Reg. Studies 29, 593–604. Given the importance of R & D and innovative outputs, and the change in regional policy in the 1980s to encourage an enterprise culture based inter alia on a high rate of innovations, this paper attempts to explain the determinants of inventive activities in one of the most disadvantaged regions of the United Kingdom. A model incorporating the impact of market structure is estimated and it is found that, in Northern Ireland, higher R & D spending leads to a higher probability of innovating, while R & D itself is positively affected by higher post-innovation price-cost margins. Thus, R & D spending and innovation outputs are beneficial to profitability and thus presumably the long-term growth of firms. However, while market structure is important, the direct effects of monopoly power are, if anything, negative. Thus, the results presented by GEROSKI, 1990, are support...

A matching analysis of why some firms in peripheral regions undertake R&D whereas others do not

Many studies have established the importance of investment in R&D to facilitate innovation and consequently improve firm productivity. Firms decide whether or not to undertake R&D depending on a range of factors such as market orientation, business objectives, competitive advantages and absorptive capacity. This paper studies the factors that influence this decision in peripheral locations; and for firms that do not undertake R&D, we analyse the reasons for not doing so. The research is based on data from a survey of some 250 matched firms operating in Northern Ireland, about half undertaking R&D and half not. Northern Ireland is an interesting case study because it exhibits a low level of investment in R&D despite the public subsidies and policy initiatives that have existed over the last 30 years. For firms that undertake R&D, our results mostly confirm the findings of others while for firms that do not undertake R&D the results point to a capabilities-gap rather than a resource-gap as the fundamental problem. Policy conclusions are drawn as to what might be done to boost both the amount of R&D undertaken and the number of firms engaged in R&D in peripheral regions.

Textile Finishing Industry

The textile finishing industry (NACE code 17.3) includes activities such as bleaching, dyeing, finishing and printing and accordingly the firms sampled were primarily involved in wet manufacturing processes. The postal questionnaire (PQ) was distributed to 681 firms in Germany and 631 firms in the UK/ROI that were identified as belonging to this sector. Standard sources of information such as trade and telephone directories, business information publications and Internet databases were used to identify the population. The number of usable replies received was 73 for Germany and 78 for the UK/ROI. In Italy this short questionnaire was administered using the same approach as with the furniture industry. Starting with the larger firms in the Veneto region, firms were contacted by telephone until the target of 100 responses was achieved.

Industrial Sectors Considered

The study focused on three industrial sectors, namely, furniture, textile finishing, and fruit and vegetable processing. This chapter considers the economic structure and performance of each of these sectors in the sample countries (Germany, Italy, UK, ROI) and the European Union (EU) as a whole.

Sources of Advice (SOA)

The importance of information and advisory sources in facilitating the take up of clean technologies is the third key area of interest in this research. This aspect centres on a need for knowledge and understanding and independent advice (see Sect.1.2). Dissemination of information and advice depends on a number of factors including industry structure, with firms in fragmented industries remaining relatively poorly informed. Hence, trade associations have an important role to play in providing independent advice. Information and advisory sources include universities, R&D organisations, official government sources, business-tobusiness networks, consultants, along with the help and advice provided by suppliers and customers.

Fruit & Vegetable Processing Industry

The fruit and vegetable processing industry (NACE code 15.3) includes the preparation, preservation, canning, freezing and drying of fresh fruit and vegetables and the manufacture of fruit and vegetable juices. Wine production (NACE code 15.93) was also included; clearly this activity was only applicable in Germany and Italy. The postal questionnaire (PQ) was sent to 712 firms in Germany and 698 firms in the UK/ROI that had been identified as belonging to these sectors. Standard sources of information such as trade and telephone directories, business information publications and Internet databases were used to identify the population. The number of valid replies received was 108 for Germany and 87 for the UK/ROI. The Italian sample (100 replies) was based on a random sample of food processing firms in the Emilia-Romagna region and the short questionnaire was administered by telephone.