I thought this was a pretty well known fact, but I recently visited a college where they don't know this. Consequently their guys are training harder than ever, but they have barely improved at all (some not at all) in the last 3 years.
Increase volume first. Intensity will come naturally. If you want to get faster, it's better to increase your mileage a little and see where it takes you than to blindly start running your workouts faster (and harder). Usually more mileage brings better aerobic fitness, which in turn allows runners to run their tempos a little faster and complete more intervals or reps. Trying to increase the pace of the intervals or tempos before you're ready does nothing but cause you to overtrain. If you're a 32:00 10k guy, trying to train like you're a 29:00 guy isn't going to make you any faster. If you're a 32:00 10k guy, train like it. Don't adjust your training paces until you've proven (in a race or TT) that they should be.