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Technology transfer in ASEAN countries: some evidence from buyer-provided training network data

Listed author(s):
  • Fukunari Kimura

    ()

    (Keio University
    Economic Research Institute for ASEAN and East Asia (ERIA))

  • Tomohiro Machikita

    ()

    (Institute of Developing Economies (IDE-JETRO))

  • Yasushi Ueki

    ()

    (Economic Research Institute for ASEAN and East Asia (ERIA))

Abstract Technology transfers are important channels for firms in developing countries to get access to new technology and initiate innovation. This article examines the geographical pattern of technology transfers in the form of buyer-provided training in domestic and international production networks. Our unique buyer-supplier network data in four countries in Southeast Asia allow us to directly observe the buyer-supplier relationship as well as the existence of inter-firm provision of training for product/process innovation in order to investigate the geographical structure of knowledge acquisition, dissemination, and aggregation among local and non-local firms. The empirical analysis finds the following: (1) the probability of having training provided by the main buyer presents a U-shaped quadratic pattern with respect to the geographical distance between the respondent firms and the main buyers. The geographical proximity to the main buyer seems to be particularly important for local firms. (2) The training provision is likely for both local and non-local firms when the main buyer is a multinational located in the same country. (3) The probability of having training from the main buyer is high when the main buyer conducts R&D. (4) Both local and non-local firms that have training provided by their main buyers are likely to provide training to their main suppliers. (5) In the case of non-local firms, product innovation with production partners is more likely when they have upstream/downstream training. However, such links seem to be weaker in the case of local firms.

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File URL: http://link.springer.com/10.1007/s10644-015-9163-9
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Article provided by Springer in its journal Economic Change and Restructuring.

Volume (Year): 49 (2016)
Issue (Month): 2 (August)
Pages: 195-219

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Handle: RePEc:kap:ecopln:v:49:y:2016:i:2:d:10.1007_s10644-015-9163-9
DOI: 10.1007/s10644-015-9163-9
Contact details of provider: Web page: http://www.springer.com

Order Information: Web: http://www.springer.com/economics/development/journal/10644/PS2

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  1. Kimura, Fukunari & Ando, Mitsuyo, 2005. "Two-dimensional fragmentation in East Asia: Conceptual framework and empirics," International Review of Economics & Finance, Elsevier, vol. 14(3), pages 317-348.
  2. Yuriy Gorodnichenko & Jan Svejnar & Katherine Terrell, 2010. "Globalization and Innovation in Emerging Markets," American Economic Journal: Macroeconomics, American Economic Association, vol. 2(2), pages 194-226, April.
  3. Nicholas Bloom & John Van Reenen, 2007. "Measuring and Explaining Management Practices Across Firms and Countries," The Quarterly Journal of Economics, Oxford University Press, vol. 122(4), pages 1351-1408.
  4. Holger Görg & Eric Strobl, 2005. "Spillovers from Foreign Firms through Worker Mobility: An Empirical Investigation," Scandinavian Journal of Economics, Wiley Blackwell, vol. 107(4), pages 693-709, December.
  5. Tomohiro Machikita & Yasushi Ueki, 2015. "Measuring and Explaining Innovative Capability: Evidence from Southeast Asia," Asian Economic Policy Review, Japan Center for Economic Research, vol. 10(1), pages 152-173, January.
  6. Timothy G. Conley & Christopher R. Udry, 2010. "Learning about a New Technology: Pineapple in Ghana," American Economic Review, American Economic Association, vol. 100(1), pages 35-69, March.
  7. Andrey Stoyanov & Nikolay Zubanov, 2012. "Productivity Spillovers across Firms through Worker Mobility," American Economic Journal: Applied Economics, American Economic Association, vol. 4(2), pages 168-198, April.
  8. Ichniowski, Casey & Shaw, Kathryn & Prennushi, Giovanna, 1997. "The Effects of Human Resource Management Practices on Productivity: A Study of Steel Finishing Lines," American Economic Review, American Economic Association, vol. 87(3), pages 291-313, June.
  9. Blalock, Garrick & Gertler, Paul J., 2008. "Welfare gains from Foreign Direct Investment through technology transfer to local suppliers," Journal of International Economics, Elsevier, vol. 74(2), pages 402-421, March.
  10. Enghin Atalay & Ali Horta?su & Chad Syverson, 2014. "Vertical Integration and Input Flows," American Economic Review, American Economic Association, vol. 104(4), pages 1120-1148, April.
  11. 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.
  12. Beata Smarzynska Javorcik, 2004. "Does Foreign Direct Investment Increase the Productivity of Domestic Firms? In Search of Spillovers Through Backward Linkages," American Economic Review, American Economic Association, vol. 94(3), pages 605-627, June.
  13. Wolfgang Keller, 2004. "International Technology Diffusion," Journal of Economic Literature, American Economic Association, vol. 42(3), pages 752-782, September.
  14. Steven D. Levitt & John A. List & Chad Syverson, 2013. "Toward an Understanding of Learning by Doing: Evidence from an Automobile Assembly Plant," Journal of Political Economy, University of Chicago Press, vol. 121(4), pages 643-681.
  15. Markusen, James R. & Trofimenko, Natalia, 2009. "Teaching locals new tricks: Foreign experts as a channel of knowledge transfers," Journal of Development Economics, Elsevier, vol. 88(1), pages 120-131, January.
  16. Jennifer P. Poole, 2013. "Knowledge Transfers from Multinational to Domestic Firms: Evidence from Worker Mobility," The Review of Economics and Statistics, MIT Press, vol. 95(2), pages 393-406, May.
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