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Innovation in Manufacturing

In: Public Policy in an Entrepreneurial Economy

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  • Juan Julio Gutierrez

    (The George Mason University)

Abstract

This paper explores the determinants of three innovation outputs in low technology manufacturing factories by exploring innovation dependent on the factory’s network of relationships, both internal (intra-firm cooperation) and external (inter-factory and inter-firm) using data from, the World Bank’s “Investment Climate Survey” (ICS). The results support the idea that external networks, mainly interaction with universities, and purchasing of foreign licenses constitute a mechanism for generating innovation outputs in low-technology sectors. Foreign ownership does not appear to be a driver of innovative outputs. On the iput side, the results show importance and robustness of capital goods, adaptation and development within the factory where learning by doing, and new technical personnel.

Suggested Citation

  • Juan Julio Gutierrez, 2008. "Innovation in Manufacturing," International Studies in Entrepreneurship, in: Zoltan J. Acs & Roger R. Stough (ed.), Public Policy in an Entrepreneurial Economy, chapter 9, pages 235-254, Springer.
    • Handle: RePEc:spr:inschp:978-0-387-72663-2_9
    DOI: 10.1007/978-0-387-72663-2_9
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