Innovation-related Activities in a Low-tech Industry : A Study of the Electroplating and Surface Treatment Industry in Sweden

Abstract

Given the complex and interdependent nature of innovation, it is a diverse phenomenon which takes place both in high‐ and low‐tech industries. The purpose of this paper is to increase our understanding about low‐tech industries’ innovation‐related activities and the specific capabilities of the companies that influence those. To achieve this purpose this study has performed an empirical analysis of the Swedish context of the Swedish Electroplating and Surface Treatment Industry (ESTI) and the characteristics of the companies operating in it. It investigated how the companies perceived their expertise and innovative activities in comparison with their main competitors. The main types of innovation the ESTI companieshad undertaken in a three‐year period (2004–2006) were studied. The research and development (R&D) and personnel qualification improvement expenditures were explored. The study looked into collaboration and the factors which companies perceived as important in order to collaborate. Our empirical evidence shows that innovation in the ESTI is shaped notby R&D but by other determinants, such as specific and rare capabilities in, for example, processing technologies, logistics, ability to spot, evaluate and exploit external knowledge as well as their ability to establish and sustain intercompany relationships. Strong relationships and integration with customers and suppliers emerge as pivotal for the innovation‐related activities in the ESTI. Additionally, close collaboration, facilitated by a strong intermediate institution, such as the Swedish Association of Surface Treatment Companies (Svensk YtbehandlingsFörening – SYF, also shape the innovation‐related activities in the ESTI