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Public policy, locational choice and the innovation capability of high‐tech firms: A comparison between Israel and Ireland
Author(s) -
Frenkel Am,
Shefer Daniel,
Roper Stephen
Publication year - 2003
Publication title -
papers in regional science
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.937
H-Index - 64
eISSN - 1435-5957
pISSN - 1056-8190
DOI - 10.1111/j.1435-5597.2003.tb00011.x
Subject(s) - irish , metropolitan area , incentive , high tech , business , public policy , economics , economic growth , market economy , political science , geography , philosophy , linguistics , archaeology , law
. Using survey data from Irish and Israeli firms we examine the influence of public policy on the characteristics, location and innovation capability of high‐tech firms. The innovation activities of Israeli firms in Israel are found to be much more locationally sensitive than that of Irish companies. Regional policy incentives, involving the dispersal of high‐tech firms to peripheral areas of Ireland are therefore likely to have had little negative effect on firms' innovation capabilities. In Israel, however, inducing highly R&D intensive firms to locate away from the main metropolitan areas may be counter‐productive.