Innovation Performance and Embeddedness in Networks: Evidence from the Ethiopian Footwear Cluster
AbstractThis study focuses on innovation in a cluster of informal shoemaking firms in Ethiopia—namely the Mercato footwear cluster. It examines how differently those firms are embedded in networks and how heterogeneous they are in absorptive capacity, and how this heterogeneity affects their innovation performance. Business networks are the major channels through which knowledge flows into the cluster. The study reveals that despite geographical proximity and homogeneity in social background the firms in the cluster behave and perform differently. Based on econometric analysis we document a positive and strong effect of local network position and absorptive capacity on innovation performance.
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Bibliographic InfoArticle provided by Elsevier in its journal World Development.
Volume (Year): 41 (2013)
Issue (Month): C ()
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Web page: http://www.elsevier.com/locate/worlddev
industrial clusters; innovation performance; networks; informal sector; Africa; Ethiopia;
Other versions of this item:
- Gebreeyesus, Mulu & Mohnen, Pierre, 2011. "Innovation performance and embeddedness in networks: evidence from the Ethiopian footwear cluster," MERIT Working Papers 043, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
- O17 - Economic Development, Technological Change, and Growth - - Economic Development - - - Formal and Informal Sectors; Shadow Economy; Institutional Arrangements
- O31 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
- O33 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
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