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The Determinants of Innovation in the Malaysian Manufacturing Sector: An Econometric Analysis at the Firm Level

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  • Lee, Cassey

Abstract

Econometric analysis of firm-level data from the recent National Survey of Innovation indicates large firms are more likely to innovate compared to small firms. Ownership structure is also found to be an important determinant of innovation - private limited and public limited firms are twice more likely to innovate compared to soleproprietorship firms. A surprising finding is the negative correlation between the propensity to innovate and the share of exports in sales. There is also no evidence that innovation is related to the extent or foreign vs. local ownership of firms. The findings on the influence of industry-level characteristics are mixed. While the influence of industry's technology level is inconclusive, the propensity to innovate is positively correlated with market concentration.

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Bibliographic Info

Paper provided by University of Manchester, Institute for Development Policy and Management (IDPM) in its series Centre on Regulation and Competition (CRC) Working papers with number 30670.

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Date of creation: 2004
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Handle: RePEc:ags:idpmcr:30670

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Keywords: Research and Development/Tech Change/Emerging Technologies;

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Cited by:
  1. Yong Sook Lu, 2013. "Book Review: Malaysian Economy: Unfolding Growth and Social Change, by Rajah Rasiah (ed.), Shah Alam: Oxford University Press, 2012, 296 pp," Institutions and Economies (formerly known as International Journal of Institutions and Economies), Faculty of Economics and Administration, University of Malaya, vol. 5(1), pages 121-124, April.
  2. de Mel, Suresh & McKenzie, David & Woodruff, Christopher, 2009. "Innovative Firms or Innovative Owners? Determinants of Innovation in Micro, Small, and Medium Enterprises," IZA Discussion Papers 3962, Institute for the Study of Labor (IZA).
  3. Cassey Lee & Lee Chew ging, 2007. "SME Innovation in the Malaysian Manufacturing Sector," Economics Bulletin, AccessEcon, vol. 12(30), pages 1-12.
  4. Lee, Cassey, 2004. "Competition Policy in Malaysia," Centre on Regulation and Competition (CRC) Working papers 30706, University of Manchester, Institute for Development Policy and Management (IDPM).
  5. repec:ebl:ecbull:v:12:y:2007:i:30:p:1-12 is not listed on IDEAS
  6. Eric Ramstetter, 2009. "Firm- and Plant-level Analysis of Multinationals in Southeast Asia: the Perils of Pooling Industries and Balancing Panels," Global COE Hi-Stat Discussion Paper Series gd09-106, Institute of Economic Research, Hitotsubashi University.
  7. Rahmouni, Mohieddine & Ayadi, Mohamed & YIldIzoglu, Murat, 2010. "Characteristics of innovating firms in Tunisia: The essential role of external knowledge sources," Structural Change and Economic Dynamics, Elsevier, vol. 21(3), pages 181-196, August.

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