INNOVATION AND GROWTH IN THE CITY REGION: MICROECONOMIC EVIDENCE OF ASYMMETRIES

Abstract

Using a micro-economic perspective, this study explores the type, scale and impact of innovation activities that small and medium-sized enterprises (SMEs) undertake with focus on the sub-national level. Based on a representative sample of 250 independent SMEs, based in the Leeds City Region (LCR) and using quantitative methods, this study provides evidence of the types of innovation that are most likely to result in achieving policy aims associated with for example the development of international markets or growth of employment opportunities. The findings show that there is a need for aligning business support for innovation with human capital (education/training) interventions. Furthermore, the findings provide a strong evidence base, at the local level, to inform the development of innovation policy and illustrate the connections between different types of innovation SMEs’ growth at regional level.