The Impact of Face-to-face and Frequent Interactions on Innovation: Evidence from Upstream-Downstream Relations
AbstractThis paper proposes a new mechanism linking innovation and networks in developing economies to identify explicit production and information linkages. We investigate the testable hypotheses of these linkages using survey data gathered from manufacturing firms in East Asia: Indonesia, Thailand, the Philippines, and Vietnam. We found that firms that dispatched engineers to customers achieved more product and process innovations than firms that did not. Just-in-time relationship is effective for dealing with process innovation. We found that such strong complementarities as Just-in-time are not effective for product innovation. These findings support the hypothesis that face-to-face communication and strong complementarities among buyer-seller networks have different roles in product and process innovation.
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Bibliographic InfoArticle provided by Faculty of Economics and Administration, University of Malaya in its journal Institutions and Economies (formerly known as International Journal of Institutions and Economies).
Volume (Year): 3 (2011)
Issue (Month): 3 (October)
- exchanges of engineer; innovation; insider econometrics; just-in-time; status quo;
Find related papers by JEL classification:
- O31 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
- O32 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - Management of Technological Innovation and R&D
- R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
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