TECHNOLOGY AND REGIONAL DEVELOPMENT: THE CASE OF PATENTS AND FIRM LOCATION IN THE SPANISH MEDICAL INSTRUMENTS INDUSTRY.



innovative environment for small firms, whereas large firms need the richer
environment offered by the core regions. Therefore small firms can be early users of
new technologies even if they are located outside the large urban areas.

Table 9. Explanatory model 2 of regional patenting of medical equipment by manufacturing firms
(PTMEH)
and by firms, individuals and institutions (PI2)______________

______PTMEH______

____________PI2____________

Constant

D146.3
___________
(D5.04)___________

D356.3
___________
(D5.14)___________

NETWORKING

26.6***
_____________
(4.97)_____________

67.3***

_____________(5.27)_____________

BEDS

0.009**
_____________
(2.43)_____________

0.002**
_____________
(2.63)_____________

SIZE

0.11
_____________
(1∙37)_____________

0.30
__________
(156)__________

R = 0.840 R2 = 0.705
∆R2 = 0.637 F = 10.36
p = 0.001  n=17

R = 0.855 R2 = 0.731
∆R2 = 0.669 F =11.79
p = 0.001  n=17

Notes: PTMEH □ Number of regional patents and utility models granted to Spanish firms divided by
million of inhabitants. PI2 □ Number of regional patents and utility models granted to firms, individuals
and institutions by million of inhabitants. NETWORKING □ Expenditures in computer and software by
unhabitant. BEDS □ Number of beds in clinics and hospitals. SIZE □ Average number of employees by
medical equipment manufacturing firm. IDvaluesbetweenbrackets **p<0.05 ***p<0.01
Source: Own production

These peripheral regions may develop small ‘hiDtech’ sectors when the two following
conditions are, at least, fulfilled: that the company's entrepreneur has strong personal
links within that region and assumes its lack of industrial services; and that the type of
production of the company is economically feasible in that region. Even if there are few
industrial services available, as long as the type of product or production are not in need
of agglomeration economies with other ‘hiDtech’ companies, it is posible for a ‘hiDtech’
company to locate in a peripheral region when the distance to its markets is not an
economic disadvantage. While such firms may encounter greater environmental
constraints as they grow than their counterparts in core regions, these very constraints
may in fact stimulate greater proDactive entrepreneurial behaviour which in turns
renders the firm more competitive in wider markets. Although fewer small firms may
be successful in peripheral environments, those that are may prove to be even more
competitive than the average small firm in core regions which has not had to overcome
environmental and resource constraints to the same degree (Vaessen and Keeble 1995).

This is what happens with many medical equipment products because they have high
value added but low weight per unit. Therefore it would be feasible that a new medical

14



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