Innovative Activity in SMEs and Rural Economic Development: Some Evidence from England

Recent writings on the factors influencing the competitiveness of regional and local economies have emphasized the importance of innovation in SMEs. This paper discusses the findings of a study of the innovation process in a sample of SMEs located in rural environments. Adopting a broad, evolutionary view of the innovation process, the study highlights important sectoral variations using a multidimensional index of innovation. The way in which innovation is achieved is found to be shaped by various aspects of the rural environment, but relatively few firms are constrained by their rural location. Nor does the lack of local networking opportunities appear to hold back innovation in the more active SMEs. In conclusion, the most innovative firms are shown to make an important contribution to rural economies in terms of external income generation and employment generation.     

Regional networks of small and medium sized enterprises: evidence from the Metropolitan Area of Ottawa in Canada1

Innovation is currently seen as a process which results from various interactions among different actors. Recent theories of innovation emphasize clusters and geographical proximity as loci of knowledge, development and exchange, critical to higher levels of innovation and regional growth. As a consequence, there is a territorial dimension to innovation. This article investigates the innovation activities and networking of 53 small and medium sized enterprises (SMEs) in Ottawa, Canada. Taking its point of departure from the proliferating literature on the localized nature of innovation processes, the article sets out to answer three empirical questions: How intensively are SMEs engaging in innovation activities? To what extent do they interact during innovation process activities? What is the relevance of spatial proximity in networking, and what is the relative importance of localized cooperation as compared to non‐localized cooperation. The results revealed SMEs rely as much on external networks of customers and suppliers, as they do on ones based in their own region, and that these are considerably more important, than other potential sources of ideas, to the innovation process within the firm.     

Regional Innovation Support Systems: Recent Trends in Germany and East Asia

Since the beginning of the 1990s, one can observe a clear shift in the aims of regional policy in industrialized countries from reducing regional inequalities to developing endogenous small and medium-sized enterprises (SMEs) and innovation in regions through regional innovation support systems. Innovation support systems are defined as a group of actively cooperating organizations that support the innovativeness of SMEs. An innovation support system consists of all agencies found in three support stages, namely the provision of general information, technological advice and joint R&D projects, between firms (of which technology-following SMEs are the main group), higher education institutes (HEIs) and public research establishments (PREs). Agencies found in these stages try to help to solve innovation problems mainly of technology-following SMEs by either giving them advice themselves or by referring them to other agencies in a further stage of support. The agencies can be mainly supra-nationally, nationally or regionally initiated. This paper aims at comparing these regional innovation support systems in Germany and East Asia, that is Japan and South Korea, both concerning the instruments used, their impact on regional economic development, their level of organizational embeddedness in regions and the ability of regions to coordinate innovation support policies. The main conclusions of the paper are that there are similarities between the regional innovation support systems found in the countries when it comes to policy instruments, but that the countries differ concerning their level of regional embeddedness and the abilities of regions to coordinate innovation support policies. The paper also tentatively concludes that in countries where regions have the ability to coordinate policies into integrative innovation support systems, the impact on regional economic development tend to be larger than in countries where these abilities are lacking, that is where dirigiste and grassroots support systems prevail. One important explanation for the different coordinating abilities lies in the different political-administrative systems found in the studied countries (centralized in South Korea versus federal in Germany). Other factors explaining differences are: a time lag of development policies between countries, differences between the history of supporting SMEs in regions, supra-national support frameworks, the commitment of the political leaders in regions, collective trust and the size of countries.     

Policy Support for the Diffusion of Innovation among SMEs: An Evaluation Study in the Spanish Region of Madrid

Innovation is increasingly supported by public authority action focused on regions and small and medium enterprises (SMEs). In this line, the region of Madrid launched a programme to create Technology Diffusion Centres (TDCs) in order to promote innovation culture among the SMEs of the region. This article analyses the nature of innovation activities in these firms, and the achievements of the TDCs through their work with them. Different types of TDCs are compared according to the approach they applied and the agent to which they were linked. Ten indicators were used to examine the degree of embeddedness and performance of the different TDCs among the SMEs. Results show that a sectoral approach in conjunction with links to business association is the best option for the TDCs in urban and industrial areas. However, in the peripheral or less favourable areas, such as rural ones, a territorial approach in conjunction with links to local entities is the most effective alternative.     

失地农民就业空间特征及行为模式研究——以安徽省芜湖市为例

以芜湖市失地农民为研究对象,利用2014年的实地调研数据,运用GIS空间分析、地理集中指数和空间使用曲线等方法,探讨芜湖市失地农民就业空间特征、行为模式及影响因素。研究表明,芜湖市失地农民就业以本地就业为主,空间呈大集中、小分散的格局,为单中心的社区圈层模式。在市域尺度上本地就业在空间上呈现郊区为就业热区,城区相对较少;社区尺度上,就业地主要集中在社区范围内,短距离就业为主,主要集中在1-5km距离段,其中2km处出现就业人数高峰。就业空间行为模式类型多样,本地-就业型占主导地位。失地农民的自身属性特征及思维定式影响和制约着其对就业空间行为的决策;城市化过程中制度转型与空间重构实现了郊区产业集聚格局以及社区周边的城市就业环境,为失地农民就近就业创造机会。     

Regional Technology Initiatives: Some Insights from the English Regions

The paper presents findings from recent research on the policy role and experience of a number of Regional Technology Initiatives (RTIs) aimed at supporting innovation and technology transfer, particularly in small- and medium-sized enterprises (SMEs), in the English regions. The findings are discussed in relation to recent theoretical debates around innovation processes within SMEs, regional innovation systems and learning/actor networks. A primary concern is to understand the factors shaping the evolution of such initiatives and the lessons to be learnt from the experience to date. In this respect discussion focuses on four key issues: the funding driven nature of most of the initiatives; the move away from simply making new technology more accessible to a more client-need centred approach; the structural and cultural obstacles to improved links between academia and SMEs and how some of these can be ameliorated; and the issue of strategic integration between business support agencies within a region to support longer term economic development agendas. The paper concludes that the long-term viability of the RTIs will be dependent on their continuing capacity to anticipate and respond to an evolving, and to some extent uncertain, regional policy context.     

Global Value Chains and Open Networks: The Case of Italian Industrial Districts

Italian district small and medium enterprises (SMEs) developed aggressive strategies to extend their sales networks and supply chains abroad. Literature on districts offered alternative explanations about the impacts of internationalization on local manufacturing systems. The authors consider the evolution of Italian districts in the framework of global value chain approach, focusing on the role of leading firms. Based on a survey of 650 Italian SMEs and financial indicators, the paper describes the rise of a new district firm model, the open network, which becomes a key node of global value chains. The paper also analyses the relationships among internationalization, innovation strategies and performance of SMEs.     

The European Union Structural Funds and Regional Development. The Perspective of Small and Medium Enterprises in Eastern Poland

Abstract

The article concentrates on the role of European Union (EU) structural funds in the development of small and medium enterprises (SMEs). The analysis presented in this paper is based on the results of computer-assisted telephone interviews conducted with 394 representatives of enterprises localized in three Polish Voivodships: the Podkarpackie, the Lubelskie and the Podlaskie. The entire EU structural funds are based on the assumption that by additionally financing the development of SMEs, they influence regional development indirectly. Even though EU structural funds are not the only factor influencing economic growth and the creation of Gross Domestic Product, they affect the development potential of enterprises indirectly. However, from the perspective of the representatives of researched SMEs, EU structural funds are not so significant for commitment to investment. Actually, for SMEs in Eastern Poland, they have no effect on future investment plans. This bottom-up perspective researched in one of the poorest areas of the EU puts the assumption of the positive relation between the EU structural funds and regional development into doubt.     

旅游小企业与就业研究——桂林阳朔西街案例

文章选取中国旅游小企业发展的典型地区桂林阳朔西街为案例地,对旅游小企业与当地居民就业的关系进行探讨。在对案例地进行大量调查的基础上,文章分别从旅游小企业与直接就业、旅游小企业与就业困难人群就业、旅游小企业与从业人员培训这三个方面来进行研究,最终得出的结论为：旅游小企业在促进旅游目的地居民就业方面起着重要的作用,而且与大型旅游企业相比,旅游小企业在帮助当地居民、女性、就业困难人群就业以及对目的地居民的培训方面的作用更为突出。     

Location and collaboration: Manufacturing firms' use of knowledge intensive services in product innovation

The paper addresses the relation between geographical location of firms and collaboration with knowledge intensive service providers on product innovation in a small country setting. The analysis shows that even in a small country with limited geographical distances firms located in peripheral areas are less likely to be broad users of collaboration with knowledge intensive service providers in the process of product innovation than firms located in major urban areas. However, it is only amongst firms located in the periphery that collaboration strategy seems to matter in the sense that differences in development in employment can be detected between broad and rare users of collaboration.     

The Role of Regional Policies in Promoting Networking and Innovative Activity: Evidence from Small Finnish High-tech Firms

The success of high-technology firms is strongly dependent on their innovation capacity and network relationships. There is a growing recognition that few firms are able to innovate in isolation. Cooperation can provide access to a complementary knowledge base and resources, and speed up the innovation process of firms. Regional developers are criticized for their inadequate ability to integrate themselves into the regional networks and innovation processes of firms and their ability to determine firms' needs for innovation and networking. The research topic of this study concentrates on the possibilities of regional developers of influencing the operational environment of high-tech firms through the development of networks and innovation activity of firms. Of particular interest are the micro-level policies and concrete actions by regional developers for meeting the needs of firms. The data used are based on interviews addressed to high-tech firms located in Jyväskylä Science Park in Finland.     

Dividing Societies: The Socio‐Political Spatial Implications of Restructuring in Australia

This paper reviews trends over the last two to three decades in the socio‐economic divisions in Australia, focusing on their spatial dimensions. It provides empirical evidence that our society is dividing on multiple dimensions – including shifts in industry and occupational structure, income distribution, the incidence of poverty. And it demonstrates that the differentiations across space in socio‐economic phenomena also have complex multiple dimensions, which are explained inadequately by a ‘city/bush’ dichotomy popularly espoused by politicians and reported in the media. Processes of globalisation, economic restructuring and employment shifts, and changing patterns of population movement are combining to create stark differentials between places both within the major cities as well as in regional Australia. As demonstrated by the recent One Nation phenomenon, voter backlash is strong, and it too has specific spatial characteristics.     

Capital Assistance for Small Firms: Some Implications for Regional Economic Welfare

This paper analyzes the role of finance capital in regional economic development. A cost‐benefit approach is invoked in order to estimate the welfare impacts of a regional loan and guarantee program for small firms in Israel. Program‐created employment is treated as a benefit and an employment account that separates net from gross employment, is presented. An estimate of net wage benefits is then derived. This involves adjusting wages across different earnings classes in order to account for the variation in opportunity costs of labor at different levels. The estimation of costs includes the opportunity costs of capital, administration, default, and tax‐raising costs. Results point to substantial regional welfare effects. We stress the need to account for changing regional economic structure in this kind of evaluation framework.     

What Makes SMEs more Likely to Collaborate? Analysing the Role of Regional Innovation Policy

The last 20 years have witnessed the diffusion of regional innovation policies supporting networks of innovators. The underlying aim of these policies is to encourage firms, particularly small and medium-sized enterprises (SMEs), to undertake collaborations with organizations possessing complementary knowledge. Focusing on a set of SMEs that have participated, over time, in several innovation networks funded by the same regional government, the paper investigates how their relationships have evolved with respect to the following aspects: (i) reiteration of pre-existing relationships as opposed to experimentation with new relationships; (ii) collaboration with organizations possessing complementary rather than similar knowledge and competencies; (iii) creation of local relationships rather than experimentation with extra-local collaborations; (iv) reliance upon intermediaries to connect with other organizations. Our findings reveal that the involvement in these policy-supported networks changed the firms' relational patterns, leading them to collaborate with a wider variety of agents than those with whom they were linked before the policies. Sectoral heterogeneity had a negative effect on the probability of collaborating, while co-localization increased the likelihood of collaborating. Mutual involvement with intermediaries also had a positive effect. However, in the case of firm-to-university relationships only specialized intermediaries were likely to perform a positive role and, therefore, encourage networking.     

Gender, space, and the location changes of jobs and people: a spatial simultaneous equations analysis

This article summarizes a spatial econometric analysis of local population and employment growth in the Netherlands, with specific reference to impacts of gender and space. The simultaneous equations model used distinguishes between population- and gender-specific employment groups, and includes autoregressive and cross-regressive spatial lags to detect relations both within and among these groups. Spatial weights matrices reflecting different bands of travel times are used to calculate the spatial lags and to gauge the spatial nature of these relations. The empirical results show that although population–employment interaction is more localized for women's employment, no gender difference exists in the direction of interaction. Employment growth for both men and women is more influenced by population growth than vice versa. The interaction within employment groups is even more important than population growth. Women's, and especially men's, local employment growth mostly benefits from the same employment growth in neighboring locations. Finally, interaction between these groups is practically absent, although men's employment growth may have a negative impact on women's employment growth within small geographic areas. In summary, the results confirm the crucial roles of gender and space, and offer important insights into possible relations within and among subgroups of jobs and people.     

From local economic initiatives to marriages a la mode?: Western Australia and Tasmania in comparative perspective

This paper presents a model of United Kingdom local economic development characterised by a grassroots orientation and partnership between public and private actors—marriages à la mode. It then offers research findings on the emergence of Local Economic Initiatives (LEIs) from Western Australia and Tasmania. Factors in the structure of their respective political economies appear to have made for a speedier adoption in Western Australia than Tasmania of such alternative policy characteristics as a grassroots participatory approach to policy design and implementation, which is underwritten to a considerable extent by non earmarked public funds. Over and above the structural factors, an Australia‐wide network of LEI enthusiasts, within and outside government, has encouraged imitation of the Western Australian policy innovation in Tasmania. The marriages a la mode model has not been fully replicated in Australia, however, by virtue of the relatively low profile of business organisations in LEIs.     

Persistence of innovative activities in times of crisis: the case of the Basque Country

By drawing on a large sample of Spanish manufacturing and service sector firms, the changes in firms’ innovation expenditures that have taken place since the onset of the 2008 economic crisis are analysed, as is the relationship between such changes and the location of the company. Special focus is placed on firms in the Basque Country. Compared to other Spanish regions, the Basque Country differs in terms of its fiscal status, its earlier experience of crises, its innovation performance and its greater focus on innovation-related policies. Our results show that the impact of the crisis on firms’ innovation expenditures in the Basque Country has indeed differed from that in comparable Spanish regions. Even after controlling for sectoral differences and for detailed characteristics at the firm level, firms with R&D employment in the Basque Country showed a significantly lower probability of abandoning innovation activities and even a somewhat higher probability of increasing their innovation efforts. This regional effect is especially significant for small and medium-sized enterprises.     

Rethinking Postgraduate Education in Geography: International Perspectives on Improving Practice

This symposium brings together multi-national assessments of the current state of and challenges facing postgraduate education in geography. Contributors from Europe, Australia, South Africa and the USA identify ways in which restructuring of educational systems and wider political contexts affect programmes within the field. While highlighting the implications of initiatives such as restructuring of degrees in European universities, merging of Geography into interdisciplinary units in Australia, efforts to strengthen professional development programmes in the USA and to widen racial participation in South Africa, they also demonstrate the many challenges that remain to innovation, particularly as these are affected by economic conditions and policies.     

Mirages and miracles of European small and medium enterprise development

A small‐scale industry ‘renaissance’ has characterized recent academic literature on industrialization and development policies. This comes as a reaction to the manifest difficulties facing mass production economies and to the sometimes spectacular performance of small‐ and medium‐sized enterprises (SMEs), particularly in Europe. The causes of the above success, together with the accompanying theorizations — such as the flexible specialization approach — are manifold and contradictory. Furthermore, theories on the present and future of SMEs vary as regards both optimism and policy implications — supra‐national, national or regional. Recent EU policies towards SMEs present an amalgam of instruments which, albeit often economically effective, constitute chiefly a political gesture.     

The haves and have nots in Australia's Tropical North – New Perspectives on a Persisting Problem

There is significant confluence in the literature that leads one to expect groups of haves and groups of have nots in socio‐economic systems within common spatial contexts. Several economic theories suggest economic activity to be concentrated in a few core areas with geographically large ‘peripheries’ relying on one or two industries for employment and income. In the context of the north of Australia, issues of disparities in socio‐economic status between the region and elsewhere in Australia, and also within the region have been highlighted in the literature for some time. This paper discusses the contemporary situation using customised data collected and analysed for 55 river‐basin catchments in the Tropical Rivers region of northern Australia to highlight the extent of the haves and have nots problem. A range of spatial economic theories are discussed as theoretical bases for the present day situation and as pointers to revisionist approaches which may address it. Transforming the have nots to improved states of well‐being will be a costly and difficult process. Consequently, we argue that factors other than raw incomes and economic production should be reconsidered and re‐prioritised by governments as redress to the ongoing ‘problem’ of the North.