The Impacts of Face-to-face and Frequent Interactions on Innovation: Upstream-Downstream Relations
AbstractThis paper proposes a new mechanism linking innovation and networks in developing economies to identify explicit production and information linkages and investigates 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 innovations than firms that did not. Just-in-time relationship is effective for dealing with process innovation. We found that such strong complementarities 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 InfoPaper provided by Economic Research Institute for ASEAN and East Asia (ERIA) in its series Working Papers with number DP-2010-04.
Length: 36 pages.
Date of creation: 10 Feb 2010
Date of revision:
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This paper has been announced in the following NEP Reports:
- NEP-ALL-2010-07-03 (All new papers)
- NEP-INO-2010-07-03 (Innovation)
- NEP-SEA-2010-07-03 (South East Asia)
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- Kimura, Fukunari & Obashi, Ayako, 2011.
"Production Networks in East Asia: What We Know So Far,"
ADBI Working Papers
320, Asian Development Bank Institute.
- Fukunari Kimura & Ayako Obashi, 2011. "Production Networks in East Asia : What We Know So Far," Trade Working Papers 23216, East Asian Bureau of Economic Research.
- Fukunari Kimura & Ayako Obashi, 2011. "Production Networks in East Asia : What We Know So Far," Microeconomics Working Papers 23216, East Asian Bureau of Economic Research.
- Tomohiro Machikita & Yasushi Ueki, 2011. "Interactive Learning-driven Innovation in Upstream-Downstream Relations: Evidence from Mutual Exchanges of Engineers in Developing Economies," Working Papers DP-2011-10, Economic Research Institute for ASEAN and East Asia (ERIA).
- Tomohiro MACHIKITA & Yasushi UEKI, 2011. "Impacts of Incoming Knowledge on Product Innovation: Technology Transfer in Auto-related Industries in Developing Economies," Working Papers DP-2011-08, Economic Research Institute for ASEAN and East Asia (ERIA).
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