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SME Innovation in the Malaysian Manufacturing Sector

Author

Listed:
  • Cassey Lee

    () (The University of Nottingham Malaysia Campus)

  • Lee Chew ging

    () (Nottingham University Business School, The University of Nottingham Malaysia Campus)

Abstract

This paper examines the determinants of innovation amongst small and medium enterprises in the Malaysian manufacturing sector using firm-level data. For small-sized firms, younger firms are more likely to innovate compared to older firms. However, for medium-sized and large-sized firms, older firms are more likely to innovate. The extent of foreign ownership is not an important determinant of innovation. Small-sized firms with more employees are more likely to innovate. Medium-sized firms that produce for domestic market tend to be more innovative. In terms of ownership structure, medium-sized firms that are public limited companies are less likely to innovate. The relationship between technological characteristics of industry and firms' likelihood to innovate appear to be complex. Higher market concentration is associated with higher probability to innovate for medium-sized firms.

Suggested Citation

  • Cassey Lee & Lee Chew ging, 2007. "SME Innovation in the Malaysian Manufacturing Sector," Economics Bulletin, AccessEcon, vol. 12(30), pages 1-12.
  • Handle: RePEc:ebl:ecbull:eb-07l60001
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    References listed on IDEAS

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    1. Mark Harris & Mark Rogers & Anthony Siouclis, 2003. "Modelling firm innovation using panel probit estimators," Applied Economics Letters, Taylor & Francis Journals, vol. 10(11), pages 683-686.
    2. Acs, Zoltan J & Audretsch, David B, 1988. "Innovation in Large and Small Firms: An Empirical Analysis," American Economic Review, American Economic Association, vol. 78(4), pages 678-690, September.
    3. Lee, Cassey, 2004. "The Determinants of Innovation in the Malaysian Manufacturing Sector: An Econometric Analysis at the Firm Level," Centre on Regulation and Competition (CRC) Working papers 30670, University of Manchester, Institute for Development Policy and Management (IDPM).
    4. Amemiya, Takeshi, 1981. "Qualitative Response Models: A Survey," Journal of Economic Literature, American Economic Association, vol. 19(4), pages 1483-1536, December.
    5. Secondo Rolfo & Giuseppe Calabrese, 2003. "Traditional SMEs and innovation: the role of the industrial policy in Italy," Entrepreneurship & Regional Development, Taylor & Francis Journals, vol. 15(3), pages 253-271, July.
    6. Petri Rouvinen, 2002. "Characteristics of product and process innovators: some evidence from the Finnish innovation survey," Applied Economics Letters, Taylor & Francis Journals, vol. 9(9), pages 575-580.
    7. Amemiya, Takeshi, 1984. "Tobit models: A survey," Journal of Econometrics, Elsevier, vol. 24(1-2), pages 3-61.
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    Citations

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    Cited by:

    1. Toth, Jozsef & Dries, Liesbeth & Pascucci, Stefano, 2013. "Open or Not Open? (Open Innovation in the Hungarian Wine Industry)," 87th Annual Conference, April 8-10, 2013, Warwick University, Coventry, UK 158850, Agricultural Economics Society.
    2. Armando Silva & Ana Paula Africano & Oscar Afonso, 2009. "Which Portuguese firms are more innovative? The importance of multinationals and exporters," FEP Working Papers 326, Universidade do Porto, Faculdade de Economia do Porto.
    3. Ale Ebrahim, Nader & Ahmed, Shamsuddin & Taha, Zahari, 2009. "Virtual R & D teams in small and medium enterprises: A literature review," MPRA Paper 27045, University Library of Munich, Germany, revised Oct 2009.
    4. Cassey Lee & Dionisius Narjoko, 2015. "Escaping the Middle-Income Trap in Southeast Asia: Micro Evidence on Innovation, Productivity, and Globalization," Asian Economic Policy Review, Japan Center for Economic Research, vol. 10(1), pages 124-147, January.
    5. 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.
    6. Dimitrios Kafetzopoulos & Evangelos Psomas, 2016. "ORGANISATIONAL LEARNING, NON-TECHNICAL INNOVATION AND CUSTOMER SATISFACTION OF SMEs," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 20(03), pages 1-28, April.
    7. Forero, Clemente & Corredor, Sandra & Forero, Nohora, 2010. "Business Networks and Innovation in SMEs of a Developing Country," Galeras. Working Papers Series 027, Universidad de Los Andes. Facultad de AdministraciĆ³n. School of Management.

    More about this item

    JEL classification:

    • L6 - Industrial Organization - - Industry Studies: Manufacturing
    • O3 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights

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