Patterns of Innovation in UK Industry: Exploring the CIS Data to Contrast High and Low Technology Industries

Abstract

This paper is divided into two parts. The first part is an examination of the OECD classification of industries into high, medium and low technology industries, to look at the basis for this classification and to use that as a benchmark with which to classify the Community Innovation Survey (CIS) data for the UK into similar groupings. The industries are ranked according to their research intensities and the rankings between the two datasets are compared. Some features of the UK rankings are highlighted and anomalies between the two datasets pointed out. The second part of the paper goes on to use the OECD classification into high, medium and low technology industries, applied to the CIS dataset, to contrast patterns of innovation in high technology industries with those in low technology industries. We build on the three types of innovation surveyed in the CIS, namely product, process and organizational innovation and contrast those types across high and low technology sectors. The expected relationship between high technology industries and product innovation holds—that enterprises tend to do more product innovation, the higher their research intensity. But process innovation does not conform to this pattern and there is not such a clear division between high and low technology industries. However the way they do process innovations differs with high technology industries more reliant on internal resources whereas lower technology industries tend to do it using external resources in collaboration with others. Organizational innovation is more complex, with certain types of innovation done as widely by lower technology industries as by the more research intensive industries. This supports the idea that all types of innovation should be considered, with the diffusion of ICTs making an impact across the technological spectrum of industries and showing up in various forms of organizational innovation.