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on Technology and Industrial Dynamics |
| By: | Les Oxley (University of Waikato); Shangqin Hong (University of Canterbury); Philip McCann (University of Groningen) |
| Abstract: | The economic performance of the New Zealand economy is something of an enigma. Although ranked number one (of 144 countries) for four important 'growth fundamentals' New Zealand is 'middle of the pack' when it comes to economic growth, productivity and innovation. So what is missing in this story of New Zealand performance? Using three iterations (2005, 2007 and 2009) of the Business Operations Survey, the paper seeks to answer the question using a bivariate probit regression (biprobit) approach applied to samples in excess of 2,000 unit record observations of New Zealand firms. The results suggest that factors such as firm size, high perceived quality product, investment/R&D capability, major technology change, application of formal IP protection and new export markets are systematically and positively related to innovation; while many external issues such as those related to geography, market structure, business environment, appear to have little influence. At the firm level, innovations in New Zealand are highly dependent on the firms’ internal ability to develop new technologies and market demand. (Small) size does matter in New Zealand where ultimately government may need to be involved to maintain a viable (minimum) scale for domestic R&D. |
| Keywords: | innovation; New Zealand Business Operations Survey (BOS); new economic geography (NEG). |
| Date: | 2013–09–23 |
| URL: | http://d.repec.org/n?u=RePEc:wai:econwp:13/13&r=tid |
| By: | Koen Frenken; Elena Cefis; Erik Stam |
| Abstract: | We review the literature on clusters and their effects on entry, exit and growth of firms as well on the evolutionary dynamics underlying the process of cluster formation. Our extensive review shows that there is strong evidence that clusters promote entry, but little evidence that clusters enhance firm growth and firm survival. The emergence of clusters is best understood as an evolutionary process of capability transmission between parent firms and their spinoffs, rather than as an outcome of localisation economies that would increase the performance firms in clusters compared to firms outside clusters. From a number of open questions we distil various future research avenues stressing the importance of understanding firm heterogeneity and the exact mechanisms underlying localisation economies. |
| Keywords: | entry, exit, industrial cluster, localisation economies, product lifecycle, industry lifecycle, evolutionary economic geography, firm heterogeneity |
| JEL: | L10 L20 L26 R10 |
| Date: | 2013–09 |
| URL: | http://d.repec.org/n?u=RePEc:use:tkiwps:1311&r=tid |