PRODUCTION SITE R&D IN A MATURE INDUSTRIAL REGION

A mature industrial region is often characterised by a lack of free-standing R&D units. This article shows that the absence of free-standing R&D units is paralleled by limited R&D activities within production sites. Most plants outsource some R&D activities, and the most frequently cited suppliers of R&D are consultants together with local colleges and universities. Externally-owned plants are more likely to employ full-time research staff and to seek further R&D from external sources. Limited R&D activities do not appear to reflect a lack of qualified staff in the local labour market. It is suggested that attempts to stimulate R&D might focus on the needs of the externally-owned plants or on the development of new economic activities with high R&D requirements.