Innovation performance and embeddedness in networks: evidence from the Ethiopian footwear cluster
AbstractThis study focuses on innovation in a cluster of informal shoemaking firms in Ethiopia - namely the Mercato footwear cluster. It examines how differently those firms are embedded in networks and how heterogeneous they are in absorptive capacity, and how this heterogeneity affects their innovation performance. Business interactions with buyers, suppliers and other producers are the major channels through which knowledge flows into the cluster. These business networks are mainly built on trust and long-term relationships and tend to be selective. The study reveals that despite homogeneity in social background the firms in the cluster behave and perform differently. Based on econometric analysis we document a positive and strong effect of local network position and absorptive capacity on innovation performance.
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Bibliographic InfoPaper provided by United Nations University, Maastricht Economic and social Research and training centre on Innovation and Technology in its series UNU-MERIT Working Paper Series with number 043.
Date of creation: 2011
Date of revision:
Contact details of provider:
Web page: http://www.merit.unu.edu
industrial clusters; networks; innovation performance; informal sector; Africa; Ethiopia;
Other versions of this item:
- Gebreeyesus, Mulu & Mohnen, Pierre, 2013. "Innovation Performance and Embeddedness in Networks: Evidence from the Ethiopian Footwear Cluster," World Development, Elsevier, vol. 41(C), pages 302-316.
- O17 - Economic Development, Technological Change, and Growth - - Economic Development - - - Formal and Informal Sectors; Shadow Economy; Institutional Arrangements
- O31 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
- O33 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
This paper has been announced in the following NEP Reports:
- NEP-AFR-2011-09-05 (Africa)
- NEP-ALL-2011-09-05 (All new papers)
- NEP-CSE-2011-09-05 (Economics of Strategic Management)
- NEP-INO-2011-09-05 (Innovation)
- NEP-IUE-2011-09-05 (Informal & Underground Economics)
- NEP-NET-2011-09-05 (Network Economics)
- NEP-SBM-2011-09-05 (Small Business Management)
- NEP-SOC-2011-09-05 (Social Norms & Social Capital)
- NEP-URE-2011-09-05 (Urban & Real Estate Economics)
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