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

Author

Listed:
  • 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)

Abstract

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.

Suggested Citation

  • Tomohiro Machikita & Yasushi Ueki, 2011. "Innovation in Linked and Non-linked Firms: Effects of Variety of Linkages in East Asia," Institutions and Economies (formerly known as International Journal of Institutions and Economies), Faculty of Economics and Administration, University of Malaya, vol. 3(1), pages 77-102, April.
  • Handle: RePEc:umk:journl:v:3:y:2011:i:1:p:71-102
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    References listed on IDEAS

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    1. 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.
    2. 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.
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Kazunobu Hayakawa & Kiyoyasu Tanaka & Yasushi Ueki, 2013. "Transport Modal Choice by Multinational Firms: Firm-level Evidence from Southeast Asia," International Economic Journal, Taylor & Francis Journals, vol. 27(4), pages 609-623, December.
    2. Ueki, Yasushi, 2014. "Trade obstacles, inventory level of inputs, and internationalization of enterprise activities : a comparison between Southeast Asia and Latin America," IDE Discussion Papers 474, Institute of Developing Economies, Japan External Trade Organization(JETRO).
    3. Kimura, Fukunari & Obashi, Ayako, 2011. "Production Networks in East Asia: What We Know So Far," ADBI Working Papers 320, Asian Development Bank Institute.
    4. Tomohiro MACHIKITA & Yasushi UEKI, 2013. "Who Disseminates Technology to Whom, How, and Why: Evidence from Buyer-Seller Business Networks," Working Papers DP-2013-26, Economic Research Institute for ASEAN and East Asia (ERIA).
    5. Machikita, Tomohiro & Ueki, Yasushi, 2012. "Impact of Production Linkages on Industrial Upgrading in ASEAN, the People’s Republic of China, and India: Organizational Evidence of a Global Supply Chain," ADBI Working Papers 399, Asian Development Bank Institute.
    6. Norasingh, Xaysomphet & Machikita, Tomohiro & Ueki, Yasushi, 2015. "South-South technology transfer to Laos through face-to-face contacts," Journal of Business Research, Elsevier, vol. 68(7), pages 1420-1425.
    7. 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.
    8. Tomohiro MACHIKITA & Yasushi UEKI, 2011. "Impacts of Incoming Knowledge on Product Innovation: Technology Transfer in Auto-related Industries in Developing Economies," Working Papers DP-2011-08, Economic Research Institute for ASEAN and East Asia (ERIA).
    9. OUM Sothea & Narjoko Dionisius & Charles HARVIE, 2014. "Constraints, Determinants of SME Innovation, and the Role of Government Support," Working Papers DP-2014-10, Economic Research Institute for ASEAN and East Asia (ERIA).
    10. Cassey LEE, 2012. "Knowledge Flows, Organization and Innovation: Firm-Level Evidence from Malaysia," Working Papers DP-2012-11, Economic Research Institute for ASEAN and East Asia (ERIA).
    11. Tomohiro Machikita & Yasushi Ueki, 2011. "Interactive Learning-driven Innovation in Upstream-Downstream Relations: Evidence from Mutual Exchanges of Engineers in Developing Economies," Working Papers DP-2011-10, Economic Research Institute for ASEAN and East Asia (ERIA).
    12. Tomohiro MACHIKITA & Masatsugu TSUJI & Yasushi UEKI, 2010. "How ICTs Raise Manufacturing Performance: Firm-level Evidence in Southeast Asia," Working Papers DP-2010-07, Economic Research Institute for ASEAN and East Asia (ERIA).
    13. Tomohiro Machikita & Yasushi Ueki, 2011. "The Impact of Face-to-face and Frequent Interactions on Innovation: Evidence from Upstream-Downstream Relations," Institutions and Economies (formerly known as International Journal of Institutions and Economies), Faculty of Economics and Administration, University of Malaya, vol. 3(3), pages 519-548, October.
    14. Ueki, Yasushi, 2015. "Trade costs and exportation: A comparison between enterprises in Southeast Asia and Latin America," Journal of Business Research, Elsevier, vol. 68(4), pages 888-893.

    More about this item

    Keywords

    - innovation; linkages; sources of knowledge; dissimilarity; complementarities;

    JEL classification:

    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

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