THE IMPACT OF INDUSTRIAL-PROCESS INNOVATION AMONG SMALL MANUFACTURINGFIRMS - EMPIRICAL-EVIDENCE FROM WESTERN NEW-YORK

In this paper the impact of the adoption of new technology upon the ma rket performance of small and medium-sized manufacturing firms (SMFs) is explored. Data from a six-sector survey of western New York SMFs ar e presented. The results suggest a series of relationships between the incidence of successful process innovation, new product development, and market performance. Data from the survey are explored in the conte xt of recent perspectives on the economic role of flexible specialisat ion, new product launch, and regional SMF development. A major finding is that modem production technologies can assist the competitive effo rts of small industrial firms, especially those that serve export mark ets. A further finding is that SMFs in import-sensitive industries can partially counteract external competition by adopting new manufacturi ng methods. The paper concludes with a brief discussion of the academi c and regional policy implications that flow from the survey results.