The role of university-based industrial extension services in the business performance of small manufacturing firms: case-study evidence from Western New York

This paper investigates the role of university-based industrial extension services in the business performance of small manufacturing firms in all economically declining region of the United States (Western New York). The outreach initiatives of a specific University at Buffalo (UB) programme are described. particular attention is given to the activities of UB's Centre for Industrial Effectiveness (CIE), an outreach unit with a mandate to improve the product and/or process development efforts of local manufacturing firms. Our data suggest positive returns on investment for firms that have sought technical Support under CIE programmes. A key finding is that CIE's services typically entail the transmission of well-established procedures rather than radically new ways of doing things. A further finding is that firms that have used CIE to develop improved products have experienced stronger investment returns than their Counterparts that have focused upon process development (although h the returns are positive in both instances). More broadly, our data Suggest Positive correlations between levels of project investment and a variety of commercial outcomes, including sales growth. job-retention, and unit-cost reduction. The implications of these results for regional economic development policy are discussed. The paper also reviews some of the weaknesses that Curtail the effectiveness of university-based centres such as CIE.