The roles of interaction and proximity for innovation by Irish high-technology businesses: policy implications

Show simple item record Jordan, Declan O'Leary, Eoin 2016-04-05T09:26:27Z 2016-04-05T09:26:27Z 2005-06
dc.identifier.citation Jordan, D. and O'Leary, E. (2005) 'The roles of interaction and proximity for innovation by Irish high-technology businesses: policy implications', Quarterly Economic Commentary, Summer 2005, pp. 86-100. en
dc.identifier.issued Summer 2005 en
dc.identifier.startpage 86 en
dc.identifier.endpage 100 en
dc.identifier.issn 0376-7191
dc.description.abstract This paper presents new survey-based evidence on the increasingly topical question of what drives innovation in Irish high-technology businesses. The extraordinary performance of the Irish economy since the 1990s has been inextricably linked to highly successful foreign-owned businesses, in sectors such as pharmaceuticals, electronics and computers (Gallagher, Doyle and O’Leary, 2002). It might be expected that innovation in these multi-nationals is largely sourced in other group companies located abroad. It is therefore pertinent to ask, in the context of the recent policy recommendations of the Enterprise Strategy Group (ESG) (2004), the extent to which these Irish subsidiaries source innovation in Ireland. This may be through their own research and development efforts and/or through interaction for the purposes of promoting innovation with other locally or regionally based businesses, Third Level Colleges and innovation support agencies, such as IDA Ireland and Enterprise Ireland. Moreover, it may be equally important to ask, in the context of the long-standing emphasis on improved performance of indigenous industry, whether indigenous high-technology businesses interact locally or regionally in order to promote innovation. Beginning with Culliton (1992) and continuing to the present, through, for example, Forfás (2004a) and the ESG (2004), Irish industrial policy has consistently promoted and supported clusters and networks. In recent years substantial State funding has also been devoted to research and development. The National Development Plan 2000-2006 (2000) allocated €2.5 billion and the government established Science Foundation Ireland. The ESG (2004) has proposed further State investment in research and development as well as new initiatives including building enterprise capability, funding collaboration between industry and Irish Third Level Colleges, introducing tax credits for research and development. There is a consensus in the Irish, and indeed the European, policy community that developing innovation through clusters and networks will be important for future Irish and European competitiveness (Bergin et al., 2003; Forfás, 2003; National Competitiveness Council, 2003; European Commission, 2003). By presenting survey based evidence on the sources of innovation in Irish high-technology industry, this paper makes an important contribution to this debate. It begins by outlining the design of the survey instrument and then presents the results. The policy implications of the results are then discussed. en
dc.format.mimetype application/pdf en
dc.language.iso en en
dc.publisher Economic and Social Research Institute en
dc.rights © 2005, The Economic and Social Research Institute. en
dc.subject Interaction en
dc.subject Proximity en
dc.subject Innovation en
dc.subject Irish en
dc.subject High-technology en
dc.subject Business en
dc.subject Policy implications en
dc.title The roles of interaction and proximity for innovation by Irish high-technology businesses: policy implications en
dc.type Article (peer-reviewed) en
dc.internal.authorcontactother Declan Jordan, Economics, University College Cork, Cork, Ireland. +353-21-490-3000 Email: en
dc.internal.availability Full text available en 2012-10-23T14:33:51Z
dc.description.version Published Version en
dc.internal.rssid 11185953
dc.description.status Peer reviewed en
dc.identifier.journaltitle Quarterly Economic Commentary en
dc.internal.copyrightchecked No This article is already free online at The authors did not sign a copyright agreement. !!CORA!! This article is available to download for free on publication from ESRI website. en
dc.internal.licenseacceptance Yes en
dc.internal.placepublication Dublin, Ireland en
dc.internal.IRISemailaddress en

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