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Innovation in Linked and Non-linked Firms: Effects of Variety of Linkages in East Asia

  • Tomohiro Machikita

    ()

    (Institute of Developing Economies, Inter-disciplinary Studies Centre, Japan External Trade Organization IDE-JETRO, Japan)

  • Yasushi Ueki

    ()

    (Institute of Developing Economies, Bangkok Research Centre, Japan External Trade Organization IDE-JETRO, Thailand)

This paper proposes a new mechanism linking innovation and network in developing economies to detect explicit production and information linkages and investigates the testable implications of these linkages using survey data gathered from manufacturing firms in Indonesia, Thailand, the Philippines, and Vietnam. In-house R&D activities, internal resources, and linkages with local firms and foreign firms play a role in reducing the costs of product and process innovation and search costs for finding new suppliers and customers. We found that firms with more varieties of information linkages achieve more types of innovations. Complementarities between internal and external sources of knowledge are also found.

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Article provided by Faculty of Economics and Administration, University of Malaya in its journal International Journal of Institutions and Economies.

Volume (Year): 3 (2011)
Issue (Month): 1 (April)
Pages: 77-102

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Handle: RePEc:umk:journl:v:3:y:2011:i:1:p:71-102
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  1. Rajah Rasiah, 2009. "Institutions and Public-Private Partnerships: Learning and Innovation in Electronics Firms in Penang, Johor and Batam-Karawang," Institutions and Economies (formerly known as International Journal of Institutions and Economies), Faculty of Economics and Administration, University of Malaya, vol. 1(2), pages 206-233, October.
  2. Foster, Andrew D & Rosenzweig, Mark R, 1995. "Learning by Doing and Learning from Others: Human Capital and Technical Change in Agriculture," Journal of Political Economy, University of Chicago Press, vol. 103(6), pages 1176-1209, December.
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