Provided by Research Papers in Economics
The 41st Congress of the European Regional Science Association, Zagreb,
Croatia, 29th August - 1st September 2001
Barriers and Limitations in the Development of Industrial
Innovation in the Region
Amnon Frenkel
Center for Urban and Regional Studies, Faculty of Architecture and Town Planning,
Technion - Israel Institute of Technology, Haifa, Israel 32000, Tel: 972-4-8293956, Fax:
972-4-8294071, Email: [email protected].
ABSTRACT
The growing interest in public policy contributing to the expansion of industrial innovation
have become increasingly significant, resulted from the interrelationship between innovation,
competitiveness, and economic growth. Thus the identification of barriers and limitations
factors hindering the success of innovation will define the principles basis on which efficient
and success public policy has to be based.
This paper presents the results of an empirical study in identifying the most important barriers
to the development of innovation, as ascribed by industrial firms belonging to the hi-tech
sector alongside with more traditional industries. The data collected through field survey of
industrial firms located in the Northern region of Israel and cover two different sub-regions:
metropolitan core, and periphery. The study investigates also the differences between the
industrial sectors and type of regions in the importance that ascribed to the various barriers.
Considerably similarity was identified in the most important factors that constitute barriers
that slowing down or all together stopping innovative projects, between the industrial sectors
and the different regions investigated. These findings could facilitate in design a
comprehensive policy in order to minimize the negative impact of such barriers.