View
212
Download
0
Category
Preview:
Citation preview
Innovative strategies in remote areas
Sara Davies, Jillian MacBryde and Rona Michie
Seminar on Innovation in remote areas, UHI Centre for Remote and Rural Studies,
Inverness, 21st June 2010 Funded by the UK Innovation Centre
(BIS, ESRC, NESTA and TSB)
Sara Davies, European Policies Research Centre, University of Strathclyde2
Outline
• Background to the study• Ideas behind the study• Sectoral structure and innovation• Conditions for innovation• Innovative strategies in remote areas• Initial conclusions• Future research directions
Sara Davies, European Policies Research Centre, University of Strathclyde3
Background to the study
• UK Innovation Research Centre: exploratory study
• Interviews with policy makers & business support organisations in UK ‘remote regions’
• Interviews with State ministries and agencies in Austria, Finland, Norway, Sweden, UK
• Practitioner workshop May 2010• Discussion papers: Sectors, Conditions,
Methods• International academic seminar June 2010
Sara Davies, European Policies Research Centre, University of Strathclyde4
Ideas behind the study
• Studies on innovation and geographical proximity
• Policy focus on innovation ‘in the regions’ • What about remote/rural areas?
– Case studies of innovation in remote areas– Social / organisational proximity– ICT opening up access to markets/knowledge
• Concept of hidden innovation (NESTA, OECD)
Sara Davies, European Policies Research Centre, University of Strathclyde5
Sectoral structure and innovation in remote areas
• Sectoral structure is different in remote areas– More agriculture/forestry/fishing and energy– Less manufacturing – Fewer business services– More tourism/hospitality & public services
• Innovation varies across sectors– Traditional definitions of innovation are biased
towards technology-based manufacturing
Sara Davies, European Policies Research Centre, University of Strathclyde6
Conditions for innovation in remote areas (1)
Weaknesses StrengthsEntrepreneurship
Scattered firms; Weak profitability
Self-employment (but not growth-oriented)
Skills Small labour pool, Weaker education incentives
Hidden skills, Quality of life
Access to finance
Few intermediaries Networks, Public aid
Public research Few universities / public R&D centres
Some niches
Sara Davies, European Policies Research Centre, University of Strathclyde7
Conditions for innovation in remote areas (2)
Weaknesses Strengths
Competition Few firms ?
Demand Small local markets ?
Openness: Hard
Varies across countries but weaker than in cities
Varies
Openness: Soft
Sparse population; Strong ties may create risks
Links across sectors within the region
Sara Davies, European Policies Research Centre, University of Strathclyde8
Innovative strategies in remote areas
• Negating aspects of remoteness• Using embedded natural resources• Exploiting an image of remoteness• Building on embedded human capital• Addressing the constraints of
remoteness
Sara Davies, European Policies Research Centre, University of Strathclyde9
Innovative strategies (1): Negating aspects of remoteness
• Eg. oil/gas-related engineering, electronics• Kinds of innovation
– Can include R&D, technological, organisational and marketing innovations in specialist sectors
– World-leading products for global markets• Conditions for innovation
– Public funding for infrastructure, higher education, research, business aid
– Attraction of dynamic, growing firms• Caveats
– Few regions– Few sectors even in these regions
Sara Davies, European Policies Research Centre, University of Strathclyde10
Innovative strategies (2): Using embedded natural resources
• Eg. renewable energies, Arctic technologies• Kinds of innovation
– Can include R&D, technological, organisational and marketing innovations in specialist sectors
– Focused on national/global markets
• Conditions for innovation– Expertise and technology, often from outside– Natural resources that need to be used in situ
• Caveats– Limited to resource-based sectors
Sara Davies, European Policies Research Centre, University of Strathclyde11
Innovative strategies (3):Exploiting an image of remoteness
• Eg. food, creatives, tourism, outdoor goods• Kinds of innovation
– Mainly organisational and marketing– Focused on national/global markets
• Conditions for innovation– Value of remoteness in urban markets– Local human skills & expertise– Policy support for infrastructure
• Caveats– Limited to certain sectors (some with low profitability)
Sara Davies, European Policies Research Centre, University of Strathclyde12
Innovative strategies (4): Building on local human capital
• Eg. business services, creatives, tourism• Kinds of innovation
– Mainly organisational, marketing, technological adaptation
– Focused on national/global markets
• Conditions for innovation– Depends on area’s natural, cultural, social attractiveness– Transport and ICT networks
• Caveats– Some sectors may involve relatively low pay, long hours
and poor job security
Sara Davies, European Policies Research Centre, University of Strathclyde13
Innovative strategies (5): Addressing
the constraints of remoteness
• Eg. e-health, community enterprise• Kinds of innovation
– Mainly organisational, technological adaptation– Focused on local/national markets
• Conditions for innovation– Public sector funding or policy commitment to
universal services– Often depends on local expertise, skills and
commitment
• Caveats– Facilitated by potential for local solutions to be
applicable in other places (more efficient/effective public services)
Sara Davies, European Policies Research Centre, University of Strathclyde14
Initial conclusions
• There is innovation in (some) remote rural areas• Innovation potential in a remote area depends on
– Its sectoral structure– Its conditions for innovation – which in turn depend eg. on
national/regional policy decisions
• Innovation strategies in remote areas include:– Negating aspects of remoteness– Drawing on locally embedded natural or human resources – Exploiting an image of openness– Addressing the constraints of remoteness
Sara Davies, European Policies Research Centre, University of Strathclyde15
Future research directions
• Conditions for innovation in remote areas– Which conditions matter most for individual firms and
sectors in remote areas?– How are conditions evolving due to technological changes
or shifts in business strategies or policy decisions?
• Innovative strategies in remote areas– How are firms and other actors innovating in peripheral
areas? – What differences are seen across sectors and areas?
• Methods for researching innovation in remote areas– What methods could be used for studying remote
innovation?
Sara Davies, European Policies Research Centre, University of Strathclyde16
Thank you for listening!
Sara.Davies@strath.ac.uk
http://www.eprc.strath.ac.uk/irr/
Recommended