“…Here, the UK and Germany provide an interesting contrast in this respect because of differences in the nature of innovation activity in the two countries (Finegold and Wagner, 1998;Herrigel, 1996), and because of the marked institutional and organizational contrasts between the two countries 3 . The German innovation and production system, for example, has been characterised as having a focus on diversified quality production (DQP), involving the incremental customisation of products rather than mass production or products derived from radical innovation (Streeck, 1989). By contrast, the UK innovation and production system has been characterised by its dependency on fickle capital markets, short-term business objectives and a more opportunistic (or entrepreneurial) approach to innovation (Roper, 1997;Dore et al, 1999).…”