TECHNICAL INNOVATION AND BRITISH ECONOMIC PERFORMANCE

TECHNICAL INNOVATION AND BRITISH ECONOMIC PERFORMANCE

Technical Innovation and British Economic Performance Science Policy Research Unit, Sussex Edited by Keith Pavitt M MACMILLAN

Science Policy Research Unit 1980 Softcover reprint of the hardcover 1 st edition 1980 978-0-333-26225-2 All rights reserved. No part of this publication may be reproduced or transmitted, in any form or by any means, without permission First published 1980 Reprinted 1981, 1982, 1984 Published by THE MACMILLAN PRESS LTD London and Basingstoke Companies and representatives throughout the world British Library Cataloguing in Publication Data Technical innovation and British economic performance 1. Technological innovations -Economic aspects - Great Britain I. Pavitt, Keith 338. '06 HC260.T4 ISBN 978-1-349-04563-1 ISBN 978-1-349-04561-7 (ebook) DOI 10.1007/978-1-349-04561-7

Contents Acknowledgements Nota on the Contributors vii ix 1 Introduction and Summary Keith Pavitt 1 PART I 2 Britain's Industrial Perfonnance 1850-1950: a Fallure to Adjust W. B. Walker 19 3 Innovative Activities and Export Shares: some Comparisons between Industries and Countries Keith Pavitt and Luc Soete 38 4 British Attitudes to Engineering Education: a Historical Perspective AUlten Albu 67 5 British Management Compared NuoJa Swords-Isherwood 88 6 Technical Change in the Defence Industry MIITY Ka1dor 100 PART II 7 Innovation in Textile Machinery Roy RothweU 125 8 Innovation in Coal-mining Machinery: the Case of the Anderton Shearer Loader Joe Townsend 142 9 Forklift Trucks Peter Senker 159 10 Merchant Shipbuilding and Marine Engineering AUlten Albu 168 11 Innovation and Competitiveness in Portable Power Tools 12 13 M. I. Robson 235 14 Nuclear Reactor Development in Britain C. M. Buckley and R.Day 252 W. B. Walker and J. P. Gardiner 184 Innovation in the British Steel Industry I01llltNm Aylen 200 Heavy Electrical Plant A. I. Surrey. C. M. Buckley and

vi CONTENTS 15 The Broad Base of Technical Change in the Gas Industry Howard J. Rush 267 16 The UK. Semiconductor Industry E. Scibe"as 282 PART III 17 Policies in Industry Roy Rothwell 18 Government Policy C. Freeman Author Index Subject Index 299 310 327 333

Acknowledgements The research on which this book is based was financed from a number of sources: the Central Electricity Generating Board, the Department of Industry, the Engineering Industry Training Board, the Leverhulme Trust, the National Economic Development Office, the Science Research Council and the Social Science Research Council. We are grateful for the encouragement given to us to write the book by John Ashworth of the Central Policy Review Staff. The Science Policy Research Unit has benefited from outside contributions in the form of a specific chapter written by Jonathan Aylen of Salford University. At the same time, all authors benefited greatly from critical comments and suggestions by outside readers of early drafts including members of the staff of CPRS, and David Stout and his colleagues at the National Economic Development Office. We owe a particular debt to Daniel Jones, of the Sussex European Research Centre, who gave generously of his time and his ideas in commenting on other people's work; and to George Ray of the National Institute for Economic and Social Research, who made systematic and helpful comments on drafts of each of the chapters. Nevertheless, the authors take full responsibility for the book's contents. Neither its analysis nor its conclusions are those of the UK Government or any other body. The authors have put up patiently and gracefully with continuing editorial demands for change, and for greater clarity and brevity. A considerable burden has also fallen on to the Unit's secretarial staff, with constant typing, retyping and revision of the various chapters; we are therefore grateful to Vicky Clay, Rosemary Gee, Janet Grundy, Charlotte Huggett, Maureen Kelly, Marjorie Lee, Milena Mackay, Hazel Robards and Sian Thomas. We are also grateful to Philippa Shepherd who did the copy-editing, and to Vivian Johnson who compiled the index. Finally, we thank Christopher Freeman, Director of the Unit, who originally had the idea to prepare the book, and has given constant support to its preparation throughout; and Austen Albu who, after his retirement from politics, has not only contributed two chapters to this book, but has

viii ACKNOWLEDGEMENTS generously contributed his insights on a subject that - throughout his industrial and political career - he has always believed to be of major importance. The author and publishers wish to thank the following who have kindly given permission for the use of copyright material: British Gas Corporation for extracts from the figures in the Annual Reports 1950-1977, published by HMSO; Cambridge University Press for the tables from Industrial Growth and World Trade (1963) by A. Maizels and The British Machine Tool Industry 1850-1914 (1976) by R. Floud; Concast A.G., Zurich, for the table from World Survey (March 1977); the Controller of HMSO for the tables from official publications; Council of Engineering Institutions for the table from Chi's 1975 Survey of Professional Engineers; The Daily Telegraph Limited for the table of CEGB cost figures published in the Daily Telegraph 31 October 1978; Engineering Employers' Federation for the table in Graduates in Engineering (1977); Financial Times Limited for the table from Financial Times (17 January 1977);!PC Science and Technology Press limited for the table from 'Energy use in U.K. Industry' by J. Chesshire and C. Buckley in Energy Policy, vol. 4, no. 2 (September 1976); Uoyds Register of Shipping for the table from their published figures; Metal Bulletin for the table from Iron and Steel Works of the World, 6th edn (1974) by R. Cordero and R. Serjeantson ~ The Metals Society for the table from 'Secondary Refining for Electric Steelmaking' by J. C. C. Leach, in Ironmakingand Steelmaking, vol. 4, no. 2 (1977); National Coal Board for the extracts from their published figures.; Publications Board of the United Nations for the tables from Growth and Stagnation in the European Economy by Svennilson; Science Policy Research Unit, The University of Sussex, for the tables from their papers and publications; The Textile Institute for the table from an article by R. Rothwell published in Textile Institute and Industry (July 1977). Every effort has been made to trace all the copyright holders but if any have been inadvertently overlooked the publishers will be pleased to make the necessary arrangement at the first opportunity. December 1978 K.P.

Notes on the Contributors A. ALBU, B.Sc. (London); Fellow of Imperial College, FCGI; Honorary Doctorate (Surrey); Associate Fellow, Science Policy Research Unit, J. A YLEN, B.A. (Sussex); lecturer in economics, University of Salford. C. BUCKLEY, B.Sc. (Bath); M.A. (Sussex); British National Oil Corporation; formerly Fellow, Science Policy Research Unit, University of Sussex. R. DAY, B.Sc. (CNAA); D.Phil. (Sussex); Fellow, Science Policy Research Unit, C. FREEMAN, B.Sc. (London); Honorary D. Phil. (Linkoping); R. M. Phillips Professor of Science Policy, Associate of the Insitute of Development Studies, and Director of the Science Policy Research Unit, J. GARDINER, B.Sc. (Toronto); M.A. (Guelph). M. KALDOR, B.A. (Oxon); Associate of the Institute for Development Studies, and Fellow of the Science Policy Research Unit, K. PAVITT, M.A. (Cantab); Senior Fellow, Science Policy Research Unit, M. ROBSON, B.Sc. (Sussex); Research Office, Science Policy Research Unit, R. ROTHWELL, B.Sc. Ph.D. (CNAA); Senior Fellow, Science Policy Research Unit,

x NOTES ON THE CONTRIBUTORS H. RUSH, B.A. (SUHY at Stonybrook); M.A. (Sussex); Fellow, Science Policy Research Unit, E. SCIBERRAS, B.A.; M.A. (Sydney); D.Phil. (Sussex), Fellow, Science Policy Research Unit, P. SENKER, M.A. (Cantab); Senior Fellow, Science Policy Research Unit, L. SOETE, Lic Econ; Lic Dev Econ (Ghent); D.Phil (Sussex), Fellow, Institute of Development Studies, and Associate Fellow, Science Policy Research Unit, A. SURREY, B.Sc. (London); Senior Fellow, Science Policy Research Unit, N. SWORDS-ISHERWOOD, B.Sc. (London); M.A. and D. Phil. (Sussex); Fellow, Science Policy Research Unit, J. TOWNSEND, B.A. (Dublin); Fellow, Science Policy Research Unit, W. WALKER, B.Sc. (Edinburgh); M.Sc. (Sussex); Research Fellow, Royal Institute of International Affairs, London, and Visiting Fellow, Science Policy Research Unit,