Characteristics of innovative activities in British industry

Data collected on significant innovations in the UK since 1945 show that more than half come from firms with more than 10,000 employees, and that their share is increasing. Most innovations come from firms in the same or closely related product groups, except in instruments and mechanical engineering where user firms make a significant contribution. A high proportion of innovations produced in technology-intensive product groups (chemicals, mechanical engineering, electronics) are used in a wide variety of other sectors. This data on significant innovations is on the whole consistent with other data on innovative activities. The unreasonably low proportion of the innovations identified as of foreign origin probably reflects the importance of imitation through independent redevelopment as a source of technology imports. If so, technology imports and R & D are complementary activities, rather than substitutes.