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internal R&D as a source of innovation. These are knowledge exporters.
The importing or exporting of knowledge can serve as an excellent indicator of the expertise of a
regional system of innovation. A predominance of firms with a regional focus will indicate that the
region is underdeveloped. Coupling this with other indicators of economic activity, and longitudinal
research will indicate whether the region is developing or not. (This is also very useful when applied
to particular industrial sectors or clusters, since it can indicate the growth of pockets of expertise, or
clusters). On the other hand, a region or cluster dominated by firms with a transnational focus will
indicate competence or even special expertise in that region. In both instances, these indications are
of greater interest and usefulness to policy makers than whether a product or process is new to a
particular country.
Conclusions
Some messages for policy makers interested in the emerging knowledge-based economy can be
derived from the data. Innovative firms do appear to need trained individuals, and those which have
produced innovations which are new and unique to the market which they serve, even more so.
Governments, ever mindful of the need to make the transition to the “new economy” need to invest
heavily in post-secondary education. It is no accident that current growth of the Irish economy has
been accompanied by massive investments by the government in post-secondary education.
Another area requiring improvement is knowledge on the levels transfers from studies to
employment. Given the high cost of post-secondary education, more knowledge is needed as to
about how the resulting talents are used, and how, over time, technical knowledge is either
augmented or depreciated. Studies of the stocks and flows of human capital lead directly to the
study of the actors and networks that make up an NSI. This is a field which is only just beginning to
be being examined, but which is probably important in smaller economies than in larger ones, where
the sheer number of networks and individual actors, results in individual actor-networks having less
individual influence on the system.
With the current em phasis on job creation as a policy goal in itself, the analysis of non high-tech
sectors becomes more important. Natural resource based industries and consumer service based
industries can all be innovative within their markets. In BC these services industries tend to cluster,
by sector, so that it is important to be able to situate them in any policy framework devoted to
enhancing the innovativeness of firms as a whole. The link between the tourism sector and other
(innovative) sectors such as agrifoods, is also important, at least in the BC context.
While the limited data from the survey can only provide a glimpse of the policy issues emerging from
the analysis of regional results within BC, the effects of geographical separation do appear to
influence the responses. In previous surveys of high-technology firms in the Okanagan, it has been
reported that life-style is an important component for firms choosing to locate there and for
employees to be drawn the region (Padmore, private communication). It may be that in some
Innovation and the Management of Human Resources
CPROST Report #00-03 10
sectors, innovative firms may succeed in remote areas, simply because of the temperament of the
individuals who are likely to work in those sectors. The question remaining is whether there is a
clustering effect, that there is a lower limit to the number of highly skilled individuals required to
establish an innovative cluster, or indeed , whether an cluster of individuals, or firms, is required to
establish an innovative industrial sector. Do innovative firms attract skilled individuals, or the reverse,
or is it a matter of establishing an environment in which both skilled individuals and innovative firms
can flourish? Perhaps it is a case of “If you build it they will come”?
Finally, and perhaps most important, is the issue of whether the firm in question has developed a
new and unique innovation. Given the strong correlation between the positive responses to the
personnel-related questions, and the “new and unique” definition of innovation, it would appear that
policy analysis should be directed towards this definition of innovation .As noted above, respondents
are probably better equipped than researchers to define what their markets and whether their
innovations are indeed new to the markets which they serve. Firm innovativeness should be based
on a new to the market determination. “New to the firm” is not necessarily innovative, and “new to
the nation” does not address the economic realities of transnational markets. “New to the world”,
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