Competing in the Global Economy – The Innovation Challenge

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Fig 54. Innovation activity – % of innovation active firms by region One indicator of the nature of innovation rather than just its existence is in the degree of newness. This is shown here by the share of enterprises with products and processes which are not only new to the firm in question, but also new to the firm’s market or industry, dubbed novel innovation (Fig 55). 73 West Midlands South East North East UK Wales East Midlands Northen Ireland South West East Scotland North West London Yorkshire & Humberside Source: CIS 1998-2000. 0 10 20 30 40 50 60 Fig 55. Novel product innovation by region, percentage of all enterprises Percentage 12 10 8 6 4 2 East Midlands South East Source: CIS 1998-2000. Scotland East South West West Midlands Wales UK London North East North West Yorks and Humbs Northern Ireland
Fig 56. Novel process innovation by region, percentage of all enterprises Percentage 7 6 5 4 3 2 1 0 West Midlands Wales Source: CIS 1998-2000. East Midlands London South East Scotland UK The South East leads the way in novel product innovation along with the East Midlands, both at 10 per cent of enterprises. Wales and the West Midlands results reflect their relatively strong process innovation with 6 per cent of their enterprises introducing novel processes (Fig 56). Northern Ireland has the least novel innovation with only 4 per cent of firms introducing a novel product and 3 per cent introducing a novel process. There are also regional differences in the extent firms generated revenue from new and novel products between 1998 and 2000 (Figs 57&58). Eastern North East North West South West Yorks and Humbs Fig 57. Percentage of turnover from products new to the firm or significantly improved for product innovators Percentage 50 45 40 35 30 25 20 15 10 5 0 London South East Source: CIS 1998-2000. South West UK East Yorks and Humbs Northern Ireland North East East Midlands Scotland West Midlands Northern Ireland Wales North West 74
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DTI ECONOMICS PAPER NO. 7 Competing
Page 3 and 4:
Foreword The recent DTI strategy sh
Page 5 and 6:
Key factors determining UK innovati
Page 7 and 8:
Challenges facing the UK • The op
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Contents Introduction..............
Page 11 and 12:
Part I: Innovation and productivity
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Relatively weaker performance has l
Page 15 and 16:
UK owned establishments. And simila
Page 17 and 18:
Growth accounting studies 8 have be
Page 19 and 20:
Community Innovation Survey The Com
Page 21 and 22:
Fig 13. Output measures of UK innov
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Fig 16. Share of foreign affiliates
Page 25 and 26:
Analysis 25 of patents and other IP
Page 27 and 28:
Fig 22. The barriers to lean manufa
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• Institutional economics which s
Page 31 and 32: The mapping of the ‘national inno
Page 33 and 34: The UK has for a number of years la
Page 35 and 36: Fig 25. Share of total S & T gradua
Page 37 and 38: • Furthermore, employees77 feel t
Page 39 and 40: Fig 28. Summary indicators of the s
Page 41 and 42: Fig 30. Proportion of enterprises t
Page 43 and 44: But firms appear to base their deci
Page 45 and 46: There is usually no simple way of d
Page 47 and 48: However if the economic models that
Page 49 and 50: Turning to the demand for finance,
Page 51 and 52: Despite lower levels of funding com
Page 53 and 54: Investments in design can help busi
Page 55 and 56: Sources of information for innovati
Page 57 and 58: Fig 42. Services value added as % o
Page 59 and 60: Fig 45. Imports of goods in high-te
Page 61 and 62: Fig 47. Share of labour force who h
Page 63 and 64: Increasing internationalisation Inn
Page 65 and 66: As a result of lock in, and the fac
Page 67 and 68: Illustrative classification of serv
Page 69 and 70: Company Manufactured Service Final
Page 71 and 72: Industry benefits from access to th
Page 73 and 74: technologies developed in new appli
Page 75 and 76: • Procures goods and services wor
Page 77 and 78: Annex B: Private and Social returns
Page 79 and 80: On balance it is likely that nation
Page 81: Fig 53. Business R&D spend per head
Page 85 and 86: Fig 59. Region of enterprises findi
Page 87 and 88: Some authors have lamented the rela
Page 89 and 90: A number of schemes, in particular
Page 91 and 92: • Faraday partnerships aim to add
Page 93 and 94: References Aghion, P. and Howitt, P
Page 95 and 96: Council for Excellence in Managemen
Page 97 and 98: HM Treasury, Small Business Service
Page 99 and 100: OECD, Technology, Productivity and
Page 101: Tamkin, P., Hillage, J. and Williso
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Competing in the Global Economy – The Innovation Challenge

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