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Industrial upgrading, exploitative innovations and explorative innovations

  • Azadegan, Arash
  • Wagner, Stephan M.
Registered author(s):

    Industrial upgrading (IU), the stepwise development of manufacturing skills from simple to more complicated tasks, can be a highly effective approach for late entrants. IU relies on a sequential and paced approach to develop progressively more complicated industry-established practices. We explore the effects of IU on innovation performance. Using path analysis on a sample of 353 manufacturers, we show that firms can progress from lower rungs of manufacturing and design to higher rungs. Progression afforded through IU result in a positive association with exploitative innovations, which partially mediate the effect of IU on explorative innovations.

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    Article provided by Elsevier in its journal International Journal of Production Economics.

    Volume (Year): 130 (2011)
    Issue (Month): 1 (March)
    Pages: 54-65

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    Handle: RePEc:eee:proeco:v:130:y:2011:i:1:p:54-65
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