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FP5

Policy and Innovation in Low Tech. Knowledge Formation, Employment & Growth Contributions of the "Old Economy" Industries in Europe- PILOT, Final Report, EUR 23152

Project ID: HPSE-CT-2002-00112
Funded under: FP5-HUMAN POTENTIAL

Abstract

The PILOT project comprised partners from nine European countries. The national research teams have conducted a series of case studies on non-research-intensive, so called low-tech companies in eleven countries, investigating their value chains and regional networks, and the policies that impact on these firms and on low-tech and medium-low-tech (LMT) sectors in general. A second thread of work has been quantitative analyses of the contributions of these industries to employment, growth and innovation in OECD countries. Finally, the members of the project made a number of conceptual advances.
Among the most important results are the following: The project established that most growth and employment in OECD countries still emanate from LMT industries. It provided ample evidence of the existence, and in many cases the crucial importance, of nonresearch based innovation. The analysis shows that innovativeness is based on a particular enabling configuration of resources that a company possesses rather than on excellence in R&D alone. In fact, PILOT found that significant innovation might occur in the absence of any activity that could be classed as R&D under commonly-used definitions. Internal organisational practices - knowledge management and personnel policy in particular - play a vital role for innovation in and the innovativeness of LMT firms, while network relations between companies and supportive social networks on a regional level are also important as they are resources for firm capabilities. The analysis also substantiates that interrelationships of mature LMT sectors on the one hand and young high-tech sectors on the other are of major importance for the innovativeness of industry in general.

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Record Number: 9086 / Last updated on: 2008-04-14
Category: MISC
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