Industrial upgrading, exploitative innovations and explorative innovations
AbstractIndustrial upgrading (IU), the stepwise development of manufacturing skills from simple to more complicated tasks, can be a highly effective approach for late entrants. IU relies on a sequential and paced approach to develop progressively more complicated industry-established practices. We explore the effects of IU on innovation performance. Using path analysis on a sample of 353 manufacturers, we show that firms can progress from lower rungs of manufacturing and design to higher rungs. Progression afforded through IU result in a positive association with exploitative innovations, which partially mediate the effect of IU on explorative innovations.
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Bibliographic InfoArticle provided by Elsevier in its journal International Journal of Production Economics.
Volume (Year): 130 (2011)
Issue (Month): 1 (March)
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Industrial upgrading Cumulative capabilities Organizational learning Innovation;
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