Innovation and New Product Development in smes: An Investigation of the Scottish Food Industry




НазваниеInnovation and New Product Development in smes: An Investigation of the Scottish Food Industry
страница8/54
Дата конвертации02.02.2013
Размер1.77 Mb.
ТипДокументы
1   ...   4   5   6   7   8   9   10   11   ...   54

2.6Determinants of innovation: External characteristics




External

Characteristics

Industry Specific

Region Specific

Concentration

Competition

Barriers to Entry

Regional economic performance

Industrial policy

Potential for spin-off


Entrepreneurship

Research Networks


Attitude towards innovation

Headquarter branch ratio


Figure : External determinants of innovation

2.6.1External industry specific factors



The industry specific factors that have been analysed by scholars relate to the nature of competition in the industry related particularly to concentration and barriers to entry, (Kraft, 1989 and Dijk et al., 1997).


Schumpeter (1942) argues that high barriers to entry and industrial concentration motivate innovation by restricting competitive initiative and enhancing profitability. This in turn provides the requisite financial resources for R&D and gives an impetus to innovation. Subsequent work, however, has generated mixed results on the impact of competitive structure in an industry on the innovative conduct of enterprises within it.


On Schumpeter’s side of the argument, though not exactly reiterating the ease of innovation caused by a lack of competition but rather highlighting difficulties of innovation under stiff competition, it is asserted that too much competition may dampen tendencies to innovate and seriously restrict a firm’s innovative action (Kamien and Schwartz, 1982); it would inhibit rather than promote product innovation (Abernathy and Utterback, 1978) and may encourage firms to try and gain competitive advantage through routes other than product innovation (Fritz, 1989).


On the other side of the divide, it is contended that in the absence of competition, innovation becomes unnecessary (Dasgupta and Stiglitz, 1980) and barriers to entry decrease the incentive to be the product pioneer (Kraft, 1989)

2.6.2External region specific factors



SMEs’ innovation, very often, has been studied with a regional focus. Recent SME innovation studies include those that analyse the phenomenon in Portugal (Fontes and Coombs 1996), France (Soderquist et al., 1997), Turkey (Burgess et al., 1998), Cyprus (Dickson and Hadjimanolis 1998), Central London, (Georgellis et al., 2000), Finland (Lindman, 2002), Holland, (Engelen, 2002), Belgium (Avermaete et al., 2003), Greece (Salavou et al., 2004), Northern Ireland, (McAdam et al., 2004), UK, (Boyle 1998, Freel, 1999, Woodcock et al., 2000, Stockdale 2002 and Frenz et al., 2004) and Wisconsin US (Blumentritt 2004).


In one of the early works on the regional dimension of innovation, Oakey (1979) reports that in all planning regions of the UK, there was a strong tendency for short distance intra-regional movement of innovations, which highlights the importance of developing indigenous regional innovation potential.


In an analysis based on 300 important innovations introduced by the UK firms between 1956 and 1978 Oakey et al. (1980) show that branch plants do not produce their expected share of innovation. They conclude that new techniques are more likely to be developed and manufactured on site if the plant concerned is a headquarter factory while ‘branch’ plants are more likely to ‘import’ products developed elsewhere. The location of centres of R&D expertise is clearly a significant aspect in determining the location of a company’s first commercial manufacturer of innovations. Significant more plants, both large and small, produce innovations in the southeast than expected, while in the Development Areas, small firms perform well and large firms perform rather poorly. This might be taken to suggest that small plants are better suited to regional innovations- especially independent small plants – than are larger plants.


In their seminal work on small firm innovation Rothwell and Zegveld (1982) try to address the issue whether innovation and particularly small firm innovation is a regional phenomenon. They report that:


  1. A Country’s propensity for technological innovation is determined by not only the economic conditions prevailing there and its R&D infrastructure, but also by the society’s attitude towards innovation. Cultural differences between different countries and regions strongly affect the rate and direction of technical change as well as government policies set up to foster innovation.

  2. Independent small firms might be better vehicles for regional development than the branch manufacturing plants of large firms. Large companies tend to establish centralised R&D laboratories, thus localising innovative effort, often at the site of patent establishment, which can make it difficult for branch plants to innovate in response to local market needs.

  3. The markets of independent small firms are often localized thus making small firm innovation largely a local phenomenon; this is well illustrated in the UK.


Oakey et al. (1988) in a later work highlight the interaction between the peculiarity of a region and the functioning of high-technology small firms there. Quoting previous research in the field, they explain that:


  1. The regional quantity and quality of management of high-technology small firms in the short run is partly caused by the pre-existing local industrial milieu, for example, the potential for spin-off entrepreneurs from local industry and universities, yet it is determined in the long run by the current behaviour of such actors in the local economies. In this sense, a ‘vicious cycle’ of causality may be at work in which regions with a poor level of entrepreneurship at a given time inherit a poor entrepreneurial environment at a later time because of a continuing impoverished local enterprise culture. Conversely, regions such as Silicon Valley experience conditions where high level of entrepreneurship breeds further entrepreneurship. This is due, both to a conductive resource environment and because of a ‘demonstration effect’ where new entrepreneurs learn from their former bosses.

  2. Since indigenous growth is one of the few viable options for development regions (Ewers and Wettman 1980), the problem of lack of innovation in poor indigenous development-regions should be addressed through appropriate policies. The bottleneck to indigenous growth is particularly severe in the context of high technology small firms since, they have strong growth potential.

  3. It is clear both from the implications of agglomeration and from an impressive body of evidence on small firm ‘spin-off’ from large established corporations that existing high technology large firms are a major source of new entrepreneurs in a local area (Speigelman, 1964; Cooper 1970; Freeman 1982).


In relatively more recent explorations on regional context of small firm innovation, it is found that

  1. Apart from economic performance, the political, technological and institutional settings of a region too determine the potential of its innovative milieu (Camagni, 1991).

  2. New technology-based firms that are located in science parks grow faster than independent companies (Heydebreck, 1997) do.

  3. Beaver and Prince, (2002) claim that “there is compelling evidence to suggest that innovative SMEs do better when they are part of a community or cluster of like-minded firms that can participate in a supportive infrastructure that encourages their development and prosperity. Successful examples of such concentrations would be Silicon Valley in California, USA and the Cambridge Phenomenon”

  4. Legislation and Industrial policy in the region, public research institutes, universities, membership of industry wide associations and other forms of networking influence a firm’s innovative conduct (Antonelli and Calderini, 1999; Breschi, 1999, Avermaete et al., 2003).
1   ...   4   5   6   7   8   9   10   11   ...   54

Похожие:

Innovation and New Product Development in smes: An Investigation of the Scottish Food Industry iconProject full title: Conceptual Design of a Food Manufacturing Research Infrastructure to boost up innovation in Food Industry

Innovation and New Product Development in smes: An Investigation of the Scottish Food Industry iconAhrweiler P, Pyka A, Gilbert n (2011) a new Model for University-Industry Links in Knowledge-Based Economies. Journal of Product Innovation Management

Innovation and New Product Development in smes: An Investigation of the Scottish Food Industry iconInnovation Australia aims to promote the development, and improve the efficiency and international competitiveness of Australian industry by encouraging

Innovation and New Product Development in smes: An Investigation of the Scottish Food Industry iconJournal of product innovation management

Innovation and New Product Development in smes: An Investigation of the Scottish Food Industry iconNon-food Crops-to-Industry schemes in eu27”

Innovation and New Product Development in smes: An Investigation of the Scottish Food Industry iconNon-food Crops-to-Industry schemes in eu27”

Innovation and New Product Development in smes: An Investigation of the Scottish Food Industry iconDepartment of Innovation, Industry, Science and Research

Innovation and New Product Development in smes: An Investigation of the Scottish Food Industry iconNew Product Development and Its Applications in Textiles

Innovation and New Product Development in smes: An Investigation of the Scottish Food Industry iconThe Interplay between Innovation and Production Systems at Various Levels: The case of the Hungarian automotive industry

Innovation and New Product Development in smes: An Investigation of the Scottish Food Industry icon19th International Product Development Management Conference


Разместите кнопку на своём сайте:
lib.convdocs.org


База данных защищена авторским правом ©lib.convdocs.org 2012
обратиться к администрации
lib.convdocs.org
Главная страница