IDEAS home Printed from https://ideas.repec.org/a/mjr/journl/v57y2020i1p21-37.html
   My bibliography  Save this article

Distance to the Frontier and Innovation: The Role of Local Business Environment

Author

Listed:
  • Pham Thi Huyen Trang

    (School of Economics and International Business, Foreign Trade University)

  • Vu Hoang Nam

    (Faculty of International Economics, Foreign Trade University)

Abstract

This study uses panel data from biennially surveys of small and medium-sized enterprises during the period of 2005-2015 in the transition economy of Vietnam, and data on the quality of local business environment (measured by the provincial competitiveness index). This study uncovers that the effects of distance to the frontier (measured by the ratio of productivity of an enterprise to that of the industry leader) on innovation are negatively moderated by improved local business environment. Such an important role of the local business environment indicates that laggard enterprises, which form the majority in transition economies, are favourably supported to achieve innovation when quality of the local business environment is improved.

Suggested Citation

  • Pham Thi Huyen Trang & Vu Hoang Nam, 2020. "Distance to the Frontier and Innovation: The Role of Local Business Environment," Malaysian Journal of Economic Studies, Faculty of Business and Economics, University of Malaya & Malaysian Economic Association, vol. 57(1), pages 21-37, June.
    • Handle: RePEc:mjr:journl:v:57:y:2020:i:1:p:21-37
    DOI: 10.22452/MJES.vol57no1.2
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    More about this item

    Keywords

    Innovation; frontier; business environment; Vietnam;
    All these keywords.

    JEL classification:

    • 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
    • L22 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Organization and Market Structure

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:mjr:journl:v:57:y:2020:i:1:p:21-37. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Malaysian Economic Association (email available below). General contact details of provider: https://edirc.repec.org/data/pemmmea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.