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Interactive Learning-driven Innovation in Upstream-Downstream Relations: Evidence from Mutual Exchanges of Engineers in Developing Economies

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  • Tomohiro Machikita

    (Tomohiro Machikita Institute of Developing Economies, Inter-disciplinary Studies Center, Japan)

  • Yasushi Ueki

    (Yasushi Ueki Institute of Developing Economies, Bangkok Research Center, Thailand)

Abstract

This paper presents a simple model of the innovations that result from face-to-face communication and mutual learning in upstream-downstream relations. To examine the framework, we empirically investigate the impact of mutual knowledge exchanges on product and process innovation using a survey of manufacturing firms in Indonesia, the Philippines, Thailand and Vietnam. Evidence from interconnected firms in developing economies suggests that firms with mutual exchanges between engineers and customers achieved product innovations with new technologies and new markets. However, this is not true for simple improvement of products or process innovation. Mutual exchanges with engineers can be expected to play an important role in the case of costly innovation and in situations unknown situation to the firms.

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Bibliographic Info

Paper provided by Economic Research Institute for ASEAN and East Asia (ERIA) in its series Working Papers with number DP-2011-10.

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Length: 35 pages.
Date of creation: 01 Dec 2011
Date of revision:
Handle: RePEc:era:wpaper:dp-2011-10

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  1. William R. Kerr & William F. Lincoln, 2010. "The Supply Side of Innovation: H-1B Visa Reforms and U.S. Ethnic Invention," Journal of Labor Economics, University of Chicago Press, vol. 28(3), pages 473-508, 07.
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  8. Tomohiro MACHIKITA & Yasushi UEKI, 2010. "Innovation in Linked and Non-linked Firms: Effects of Variety of Linkages in East Asia," Working Papers DP-2010-03, Economic Research Institute for ASEAN and East Asia (ERIA).
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  12. Tomohiro MACHIKITA & Yasushi UEKI, 2010. "The Impacts of Face-to-face and Frequent Interactions on Innovation: Upstream-Downstream Relations," Working Papers DP-2010-04, Economic Research Institute for ASEAN and East Asia (ERIA).
  13. Fukunari KIMURA & Ayako OBASHI, 2010. "International Production Networks in Machinery Industries: Structure and Its Evolution," Working Papers DP-2010-09, Economic Research Institute for ASEAN and East Asia (ERIA).
  14. 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.
  15. Ann E. Harrison & Brian J. Aitken, 1999. "Do Domestic Firms Benefit from Direct Foreign Investment? Evidence from Venezuela," American Economic Review, American Economic Association, vol. 89(3), pages 605-618, June.
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