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Footnotes
1 It has been argued that EU membership constrains some policy interventions in terms of support for industry (i.e. the state aid rules), and some aspects of public technology procurement covered by the EU Directives on Public Procurement (see, for example, Edquist, Hommen and Tsipouri 2000). Balancing these constraints are potential synergies between the wider- UK and EU economies and Scotland and inward fiscal transfers. In 2001, UK government - including the Scottish agencies - funded 13 per cent of business R&D in Scotland (£65.3m of £511.6m). EU funding was £4.95m or less than 1 per cent of all business R&D spending.
2 Source: OECD (1999), p. 10.
3 Source: Metcalfe, (1997, pp. 461-462).
4 Hence their definitions of national systems of innovation do not include, for example, consequences of innovation - which does not, of course, exclude that innovations, emerging in innovation systems, have tremendously important consequences for socio-economic variables such as productivity growth and employment.
5 Beugelsdijck and Cornet, (2001, p. 3), for example, summarise the distinction as follows:
'Rent spillovers arise when quality improvements by a supplier are not fully translated into higher prices for the buyer(s). Productivity gains are then recorded in a different firm or industry than the one that generated the productivity gains in the first place. Rent spillovers occur in input-output relations. Pure knowledge spillovers refer to the impact of the discovered ideas or compounds on the productivity of the research endeavours of others. Pure knowledge spillovers are benefits of innovative activities of one firm that accrue to another without following market transactions'. (Beugelsdijck and Cornet, 2001, p. 3).
6 e.g. Anselin et al . (2000).
7 Beugelsdijck and Cornet (2001), however, fail to find any positive spillover effects in the Netherlands: "This study thus suggests that the Netherlands is too small a country to have proximity play the leading role in facilitating knowledge spillovers. This conclusion might a fortiori hold for other regions of similar size." (Beugelsdijck and Cornet, 2001, p. 17).
8 See for example the Proceedings of a Workshop Sponsored by TEKES on Benchmarking Evaluation of Public Science and Technology Programmes in the US, Canada, Israel and Finland, 2002, TIA Consulting.
9 Sources: R&D in UK Businesses, Data for 2001, Business Monitor MO14, Table 24; Labour Productivity Measures from the Annual Business Inquiry, ONS, Newport, Table 6.
10 Notably no such study was published as part of the 2004 Innovation Scoreboard. This is disappointing as EU (2003a) is based on CIS2 data and national information for CIS3 has been available for around 3 years. Contacts with Eurostat have suggested, however, that no EU wide regional analysis of CIS3 is planned, although UK regional comparisons are possible.
11 Much of the data and analysis in this section comes from Scottish Executive (2004), Business Enterprise Research and Development in Scotland 2002.
12 Scottish Executive (2003), Overview of Higher Education in Scotland - Baseline Report Part V
13 The main data source is the annual Higher Education Business and Community Interaction Survey ( HEBCIS) published by SHEFC.
14 Scottish Executive (2005) Strategic Research for SEERAD: Environment, Biology and Agriculture 2005-10.
15 See for example the account of the UK national innovation system by Walker (1993) in the book edited by Richard Nelson (1993)
16 See for example the chapter on Baden-Wurttemberg by Heidenreich and Krauss (1998) in Braczyk et al. (1998).
17 Thus, as a case in point, the OECDSTI Outlook 2004 reports that the following are the R&D Priorities of several OECD members: Canada - Biotechnology, ICT, Nanotechnologies; Japan - Life Sciences, ICT, Nanotechnology; S. Korea - Electronics & Biotechnology; Mexico - ICT, Biotechnology; New Zealand - Biotechnology, ICT and Creative Industries. Meanwhile in the USA, more 'pervasive' R&D Priorities have been set such as 'Networking IT' involving large-scale networking; high confidence software systems; software design productivity; social, economy & workforce applications; and human-computer interaction. Other 'pervasive' priorities include; complex systems, climate, water & hydrogen, homeland security, and long term nanotechnology applications, e.g. in information processing.
18 This section draws primarily on a review of business incubation in Scotland conduced for Scottish Enterprise.
19 There is no agreed definition of a business incubator but a working definition is …an organisation that helps in the creation and accelerated development of start-up and early-stage businesses by providing them with a bundle of facilities and services which can include: workspace on terms appropriate to start-up companies; access to specialist facilities/equipment; business development support services (e.g. support with business planning, marketing, financing, mentoring); common office services; access to business networks.
20 Science Matters: Making the Right Connections for Scotland ( SSAC), 2004
21 OECD (1999), p. 10.
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