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Young innovative companies: Are they high performers in transition economies? Evidence for Vietnam

Author

Listed:
  • Enrico Santarelli

    (University of Bologna)

  • Hien Thu Tran

    (Edge Hill University)

Abstract

We study the economic value of both embodied technological change and Research and Development (R&D) investment as proxies for the inputs of innovative activities conducted by Vietnamese firms. Our main focus is on the profitability of young innovative companies (YICs), private innovative companies (PICs), and small and young companies (SYCs). In particular, we test whether YICs could prove successful in fostering economic development through their technological change activities. Results show that (a) although YICs are more R&D intensive and innovative than PICs and SYCs, in general they do not produce equivalent performance; however those specific YICs focusing on technological change potentially outperform their counterparts, and (b) PICs are more capable than the other types of firms in translating their innovative effort to higher profitability.

Suggested Citation

  • Enrico Santarelli & Hien Thu Tran, 2017. "Young innovative companies: Are they high performers in transition economies? Evidence for Vietnam," The Journal of Technology Transfer, Springer, vol. 42(5), pages 1052-1076, October.
    • Handle: RePEc:kap:jtecht:v:42:y:2017:i:5:d:10.1007_s10961-016-9475-6
    DOI: 10.1007/s10961-016-9475-6
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    5. Wadho, Waqar & Goedhuys, Micheline & Chaudhry, Azam, 2019. "Young innovative companies and employment creation, evidence from the Pakistani textiles sector," World Development, Elsevier, vol. 117(C), pages 139-152.
    6. Misraku Molla Ayalew & Zhang Xianzhi & Yidersal Dagnaw Dinberu & Demis Hailegebreal Hailu, 2020. "The Determinants of Firm’s Innovation in Africa," Journal of Industry, Competition and Trade, Springer, vol. 20(3), pages 527-567, September.
    7. Aleksey V. Bogoviz & Elena V. Ioda & Yulia V. Ioda & Valentina B. Kuranova & V.V. Bobrova, 2017. "Cluster Development of Innovational Entrepreneurship: New Possibilities and Priorities in the Conditions of the Innovational Economy Creation," European Research Studies Journal, European Research Studies Journal, vol. 0(3B), pages 530-538.
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    9. Shasha Zhao & Marina Papanastassiou & Robert D. Pearce & Chie Iguchi, 2021. "MNE R&D internationalization in developing Asia," Asia Pacific Journal of Management, Springer, vol. 38(3), pages 789-813, September.

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    More about this item

    Keywords

    Young innovative companies; Embodied technological change; R&D; Profitability; Vietnam;
    All these keywords.

    JEL classification:

    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

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