Innovation and regional growth in small high technology firms: Evidence from Britain and the USA

Abstract

Oakey R. P. (1984) Innovation and regional growth in small high technology firms: evidence from Britain and the USA, Reg. Studies 18, 237–251. This paper examines the varying impact of regional resources on innovation in small, high technology firms. Evidence is drawn from diverse local economies, ranging from the development region of Scotland, through the South East of England, to the Bay area of California. Measurement focuses on the key inputs to innovation of research and development and investment capital. Surprisingly, the findings indicate encouraging small firm innovation and growth in Scotland. An anticipated higher incidence of venture capital funding in the USA is confirmed and quantified, with concluding comments on the policy implications resulting from this discrepancy.

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