Technology and regional policy: a case study of Northern Ireland

The importance of technical change, through the innovative activity of industry, has received a lot of attention in the regional economic literature. Regional policy has now begun to reflect the changing emphasis in the recent literature, and especially the key role of inventive activity in achieving long-run self-sustaining regional growth. This paper concentrates on research activities in terms of inventive inputs (R&D) and innovative outputs (especially patented innovations). In general the results suggest that there is a low level of technological activity in Northern Ireland, especially in industries that are characterized as being technologically advanced. This is partly because external ownership reduces R & D activity which in turn reduces innovation outputs but there is also a problem in that companies in Northern Ireland are relatively unsuccessful at producing new products and processes of the type and quality required in the market place. The availability of government-sponsored R & D grants since 1977 has begun to redress the imbalance in terms of R & D activities but there is, as yet, little information to show that the level of technological success has increased.