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Learning, product innovation, and firm heterogeneity in developing countries; Evidence from Tanzania

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  • Micheline Goedhuys

Abstract

Using firm data, this study investigates the various sources of firm learning, investment and linkages, and their importance for product innovation in Tanzania. The analysis reveals important differences in innovation strategies for foreign and local firms. Foreign innovative firms have stronger vertical linkages with other foreign firms and invest more in human and physical capital. Local firms offset these disadvantages through in-house R&D, connectivity, and collaboration with other local firms, proving to be more embedded in the local industrial structure. Copyright 2007 , Oxford University Press.

Suggested Citation

  • Micheline Goedhuys, 2007. "Learning, product innovation, and firm heterogeneity in developing countries; Evidence from Tanzania," Industrial and Corporate Change, Oxford University Press, vol. 16(2), pages 269-292, April.
  • Handle: RePEc:oup:indcch:v:16:y:2007:i:2:p:269-292
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    File URL: http://hdl.handle.net/10.1093/icc/dtm003
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    Cited by:

    1. Barasa, Laura & Knoben, Joris & Vermeulen, Patrick & Kimuyu, Peter & Kinyanjui, Bethuel, 2017. "Institutions, resources and innovation in East Africa: A firm level approach," Research Policy, Elsevier, vol. 46(1), pages 280-291.
    2. Pietro Cova & Massimiliano Pisani & Alessandro Rebucci, 2010. "Macroeconomic Effects of China’s Fiscal Stimulus," Research Department Publications 4689, Inter-American Development Bank, Research Department.
    3. Rahmouni, Mohieddine & Ayadi, Mohamed & YIldIzoglu, Murat, 2010. "Characteristics of innovating firms in Tunisia: The essential role of external knowledge sources," Structural Change and Economic Dynamics, Elsevier, vol. 21(3), pages 181-196, August.
    4. Nguyen, Ngoc Anh & Doan, Quang Hung & Nguyen, Ngoc Minh & Tran-Nam, Binh, 2016. "The impact of petty corruption on firm innovation in Vietnam," MPRA Paper 71902, University Library of Munich, Germany.
    5. Crespi, Gustavo & Zuniga, Pluvia, 2012. "Innovation and Productivity: Evidence from Six Latin American Countries," World Development, Elsevier, vol. 40(2), pages 273-290.
    6. Fagerberg, Jan & Srholec, Martin & Verspagen, Bart, 2010. "Innovation and Economic Development," Handbook of the Economics of Innovation, Elsevier.
    7. Mohamed Ayadi & Mohieddine Rahmouni & Murat Yildizoglu, 2009. "Determinants of the Innovation Propensity in Tunisia: the Central Role of External Knowledge Sources," Working Papers halshs-00368560, HAL.
    8. Egbetokun A. & Oluwatope O. & Adeyeye D. & Sanni M., 2014. "The role of industry and economic context in open innovation: Evidence from Nigeria," MERIT Working Papers 073, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    9. Szirmai A. & Gebreeyesus M. & Guadagno F. & Verspagen B., 2013. "Promoting productive employment in Sub‐Saharan Africa : a review of the literature," MERIT Working Papers 062, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    10. Edward Lorenz & Sophie Pommet, 2017. "Innovation, Credit Constraints and National Banking Systems: A Comparison of Developing Nations," GREDEG Working Papers 2017-16, Groupe de REcherche en Droit, Economie, Gestion (GREDEG CNRS), University of Nice Sophia Antipolis.
    11. Egbetokun, Abiodun A., 2015. "Interactive learning and firm-level capabilities in latecomer settings: The Nigerian manufacturing industry," Technological Forecasting and Social Change, Elsevier, vol. 99(C), pages 231-241.
    12. repec:ibn:ijefaa:v:9:y:2017:i:10:p:179-188 is not listed on IDEAS
    13. M. Constanza Demmel & Juan A. Máñez & María E. Rochina-Barrachina & Juan A. Sanchis-Llopis, 2013. "Innovation and productivity: evidence for 4 Latin American countries manufacturing industry," Working Papers 1307, Department of Applied Economics II, Universidad de Valencia.

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