To subscribe, advertise or contribute articles to www.asiamanufacturingnewstoday.com contact publisher@xtra.co.nz
  • Home
  • Advertise
  • Subscribe
  • Archives
Asia Manufacturing News
The official site for the Asia Manufacturing News magazine
  • Home
  • AI
  • Analysis
  • Aviation
  • Big Data
  • Business News
  • Calendar
  • Case Studies
  • Change the Conversation
  • Climate Change
  • Covid-19
  • Developments
  • Energy
  • Engineering
  • Events
  • Manufacturing Technology
  • Innovators
  • IoT
  • Manufacturing Technology
  • News
  • Product News
  • Smart Manufacturing
  • The Creative Class
  • The Interview
  • Webinars

News Ticker

$2.3b AI-Focused data center for Jakarta
Building Momentum with Hyster: Koh Kock Leong’s Journey Toward Efficiency and Growth
Time for ASEAN to rethink a single currency amid global trade tensions
Secutech 2025 concludes with optimism and strong affirmation of growth
Zoomlion’s grand debut at 2025 Changsha International Construction Equipment Exhibition
CeMAT Southeast Asia returns to Singapore 
HRS Heat Exchangers, Stand AJ51, ProPak Asia 2025, Bangkok, Thailand
Embracing Automation: Addressing ASEAN’s Manufacturing Challenges

Low-tech manufacturing, the new hidden champion of innovation

The so called “Low Tech” companies are vitally important because they employ 60% of workers.

We have been overlooking the value and innovation that goes on in so called “low tech” companies, according to a European expert on industry.

Auckland University recently hosted Prof. Dr. Hartmut Hirsch-Kreinsen Chair of Economic and Industrial Sociology TU Dortmund University, Germany.Low-tech PIC

He spoke about the latest research that is uncovering these “low tech” innovators. He says everyone has been in love with “high-tech”companies, the definition of which is companies that have an R & D investment of over 5% of turnover and “low tech” having 1% or less investment in R & D. However the so called “Low Tech” companies are vitally important because they employ 60% of workers – many more than the medium to high tech companies, and they are remarkably stable and innovative in a specific way.

Common attributes are step by step product improvement, incremental innovation, small batches and also large scale production, relatively stable market segments, close to important customers, flexible and fast delivery, and semi-skilled or unskilled workers. They have the capacity to integrate external knowledge and high tech components and are the recipients and carriers of high tech innovations. They learn by doing, trial and error and have the capability to manage networks.

Policymakers (Callaghan Innovation and MBIE) should also focus on the so called “low-tech” businesses. Innovation is more than just R & D investment as low tech businesses are good at using high tech developed elsewhere and leveraging it in innovative ways. So what can policy makers do to support? Prof Kenneth Husted from Auckland University says;
• Support creative reconstruction (don’t write off industries as “sunset” just because they are going through change)
• Stimulate collaboration across sectors and size
• Support to aggregate local lead user needs (e.g. innovation consulting services – in the absence of a large business ecosystem)
• Support locally embedded technology commercialisation and growth (e.g. technology parks)
• Leverage public procurement to stimulate innovation (this is one I have been promoting for some time now)
• Produce more people with tertiary qualifications in manufacturing.
The upshot of all this is that we may need to question the validity of R & D intensity indicators as a good basis for innovation policy.

Share this:

Related Posts

EDGNEX

Business News /

$2.3b AI-Focused data center for Jakarta

Hexagon

Developments /

Hexagon brings automated quality inspection to with  PRESTO Quality Stations

Hyster 2

Business News /

Building Momentum with Hyster: Koh Kock Leong’s Journey Toward Efficiency and Growth

‹ Software AG Appoints Stanimira Koleva  COO for Asia Pacific and Japan › Sage waste absorbs oil spills

25th June 2025

Recent Posts

  • $2.3b AI-Focused data center for Jakarta
  • Hexagon brings automated quality inspection to with  PRESTO Quality Stations
  • Building Momentum with Hyster: Koh Kock Leong’s Journey Toward Efficiency and Growth
  • Andersen Consulting expands into Pakistan with collaborating firm NEC Consulting
  • Time for ASEAN to rethink a single currency amid global trade tensions
  • ASEAN-GCC-China collaboration signals growing demand for multilateralism
  • Secutech 2025 concludes with optimism and strong affirmation of growth
  • Zoomlion’s grand debut at 2025 Changsha International Construction Equipment Exhibition
  • Trymax Semiconductor Equipment B.V. reaches 500 process chamber installations in Asia
  • Meet Sidel at ProPak Asia 2025 – Discover Aseptic & Digital Innovations

Categories

  • AI
  • Analysis
  • Aviation
  • Big Data
  • Business News
  • Calendar
  • Case Studies
  • Change the Conversation
  • Climate Change
  • Covid-19
  • Developments
  • Energy
  • Engineering
  • Events
  • Innovators
  • IoT
  • Manufacturing Technology
  • Manufacturing Technology
  • News
  • Product News
  • Smart Manufacturing
  • The Creative Class
  • The Interview
  • Uncategorized
  • Webinars

Archives

Back to Top

  • Home
  • AI
  • Analysis
  • Aviation
  • Big Data
  • Business News
  • Calendar
  • Case Studies
  • Change the Conversation
  • Climate Change
  • Covid-19
  • Developments
  • Energy
  • Engineering
  • Events
  • Manufacturing Technology
  • Innovators
  • IoT
  • Manufacturing Technology
  • News
  • Product News
  • Smart Manufacturing
  • The Creative Class
  • The Interview
  • Webinars

To subscribe, advertise or contribute articles to asiamanufacturingnewstoday.com contact publisher@xtra.co.nz

(c) Asia Manufacturing News, 2025