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In the good old times scholars and practitioners arguing in favor of a regional dimension of innovation policies felt like being the avant-garde of new, forward-looking thinking against the old-fashioned conventional wisdom, according to which “grand” industrial policy inherently required the full strength of the Nation State or – for some – the new European “super-State”. The former looked for answers from a new territorial and systemic perspective, paying particular attention to SMEs and endogenous capacities rather than searching from exogenous help by, for example, luring inward investment, typically branch plants from multinational companies, through fiscal incentives . At the same time, the emphasis on innovation implied a departure from traditional regional policies, focused on the transfer of resources from “rich” to “poor” areas and on providing basic infrastructures to disadvantaged regions in the name of cohesion objectives.

This paper analyses the reported performance of foreign-owned manufacturing subsidiaries in the UK between 1994 and 1998. The paper is set in the context of uncertainty about the performance of some foreign-owned sectors of UK manufacturing and the implications of this performance for the beneficial spillover effects sought by policy-makers from foreign-owned capital. Japanese-owned subsidiaries are the focus of particular attention, with reported profits and tax liabilities significantly below those of subsidiaries from other national sources. The wider ramifications of this finding are analysed for the UK case, particularly in terms of the need to take into account the wider exchequer effects of inward investment in the general evaluation of the financial assistance provided to foreign firms.

Inward investment promotion and aftercare remain central aspects of local economic development for English Regional Development Agencies, Scottish and Welsh development bodies, and local authorities in Britain. In many cases, partnership and consultation mechanisms have become integral to attracting inward investment and providing aftercare. Inward investment is thus an important area in which to explore interinstitutional relations between agents operating along diverse spatial boundaries and with different responsibilities. In this paper we analyse the local and regional institutional structures and relations characterising the inward investment process in Britain using new survey data from local authorities, regional bodies, and inward investors. We find that promotional activities have clearly defined structures which are chiefly led by the regional level. Aftercare is characterised by more collaborative arrangements involving both regional bodies and local government. However, many bodies are little used, with competition and tension between partners remaining frequent within English regions, regardless of recent institutional changes designed to reduce such problems. In Scotland and Wales, however, their national institutions are not only widely used, but they create high levels of satisfaction from firms. Hence, England has yet to respond to the effective challenges of Scotland and Wales. The analysis also highlights the limited importance of all national, regional, and local public institutions in attracting inward investors and their subsequent aftercare. The critical inputs to business decisions appear to be driven chiefly by more general supply-side conditions (for example, general skills versus local public packages) and the general attractions of a particular location.

TUROK I. (1993) Inward investment and local linkages: how deeply embedded is “Silicon Glen”?, Reg. Studies 27, 401–417. Substantial opportunities were created for local linkages by the sharp growth in output of the Scottish electronics industry in the 1980s. Twelve per cent of material inputs by value are currently sourced locally. Evidence about the nature of these links suggests that many correspond more closely to a simple dependent model than to a self-sustaining development scenario. Most involve capacity- or labour sub-contracting, or supply of relatively bulky, simple components. High value links are limited to branches of foreign suppliers. The reasons for the pattern of sourcing include issues of technology, quality, responsiveness and price. Examples of corporations which stress these attributes are provided. TUROK I. (1993) Investissement direct et liens locaux: dans quelle mesure la “Silicon Glen” est-elle ench[acaron]ssee?, Reg. Studies 27, 401–417. Aux annees 80 de grandes opportunites ont e...

Many localities are aware of the need to attract inward investment. This article examines the impact of Toyota's £700 million investment in Derbyshire. It investigates its direct and indirect employment effects. The article attempts to go beyond the predominantly quantitative approach adopted in previous studies by examining the characteristics of the new jobs at Toyota, and those who secure them. In addition, the nature of supplier likages and multiplier effects is investigated to analyse secondary effects. Whilst approximately 3, 000 jobs will be directly created by Toyota, there may be some disruptive effects in the local labour market. Furthermore, the potential for employment through supplier linkages and multiplier effects has not yet been maximised, although it is possible that these may materialise in the longer term. Discussion of these factors clearly highlights the fact mat the attraction of inward investment is only the first stage in the process of significant job creation.

Dismissal from employment is a severe sanction everywhere, but particularly so in Northern Ireland where high unemployment is endemic'. Since the establishment of a Northern Ireland government in 1921 unemployment rates for the province have generally been twice the British average.2 One of the consequences of high unemployment is a low-profile trade unionism coupled with a workforce in which "economic and industrial issues are much less a matter of political controversy and discussion than in most other parts of the western world."3 In the 1976 Quigley Report on economic and industrial strategy for Northern Ireland, this image of an acquiescent workforce appeared as a selling point for the attraction of industrial investment. However the subsequent decade has seen a massive decline in employment in the private sector. As the fate of De Lorean and Learfan exemplifies, attempts to create jobs by attracting inward investment have not been outstandingly successful. Moreover, between 1960 and 1980 the majority of job losses occurred in those industries which are dominated by large firms (such as Textiles and Man-Made Fibres).4 Employment has only been maintained by an abnormally large growth in public-sector services:5 therefore the opportunities of those whose qualifications or experience do not fit them for public service are increasingly dependent upon small firms whose knowledge of "good industrial relations practice" may leave much to be desired.