The Role of Producer Service Outsourcing in the Innovation Performance of New York State Manufacturing Firms

This paper assesses the contribution of external technical services to the innovation initiatives of New York State manufacturing firms. The results of a spatially and sectorally stratified postal survey of more than 400 manufacturing firms are presented. A major finding of the paper is that specialized technical services can support the product development efforts of innovative firms. The empirical results also point to significant spatial variations in technical service utilization. Some of these variations reflect different supply and accessibility conditions among the state's major regions and urban centers. The survey results are discussed in the context of recent empirical and theoretical findings on the role of producer services in urban and regional development. Particular attention is given to the empirical connection between producer service accessibility and industrial innovation.