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The Impact of Face-to-face and Frequent Interactions on Innovation: Evidence from Upstream-Downstream Relations

Author

Listed:
  • Tomohiro Machikita

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

  • Yasushi Ueki

    (Institute of Developing Economies, Bangkok Research Center Japan External Trade Organization Thailand)

Abstract

This paper proposes a new mechanism linking innovation and networks in developing economies to identify explicit production and information linkages. We investigate the testable hypotheses of these linkages using survey data gathered from manufacturing firms in East Asia: Indonesia, Thailand, the Philippines, and Vietnam. We found that firms that dispatched engineers to customers achieved more product and process innovations than firms that did not. Just-in-time relationship is effective for dealing with process innovation. We found that such strong complementarities as Just-in-time are not effective for product innovation. These findings support the hypothesis that face-to-face communication and strong complementarities among buyer-seller networks have different roles in product and process innovation.

Suggested Citation

  • 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.
    • Handle: RePEc:umk:journl:v:3:y:2011:i:3:p:519-548
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    References listed on IDEAS

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    Cited by:

    1. Akifumi Kuchiki & Masatsugu Tsuji (ed.), 2011. "Industrial Clusters, Upgrading and Innovation in East Asia," Books, Edward Elgar Publishing, number 14504.
    2. Federica Rossi & Rico Maggi, 2019. "Business travel decisions and high-speed trains: an ordered logit approach," REGION, European Regional Science Association, vol. 6, pages 1-16.
    3. Masatsugu Tsuji & Syoichi Miyahara, 2011. "Agglomeration and Local Innovation Networks in Japanese SMEs: Analysis of the Information Linkage," Chapters, in: Akifumi Kuchiki & Masatsugu Tsuji (ed.), Industrial Clusters, Upgrading and Innovation in East Asia, chapter 11, Edward Elgar Publishing.

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    More about this item

    Keywords

    - exchanges of engineer; innovation; insider econometrics; just-in-time; status quo;
    All these keywords.

    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
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)

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