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The Impacts of Face-to-face and Frequent Interactions on Innovation: Upstream-Downstream Relations

Author

Listed:
  • Tomohiro MACHIKITA

    (Inter-disciplinary Studies Center, Japan External Trade Organization)

  • Yasushi UEKI

    (Bangkok Research Centre- 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 and investigates 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 innovations than firms that did not. Just-in-time relationship is effective for dealing with process innovation. We found that such strong complementarities 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, 2010. "The Impacts of Face-to-face and Frequent Interactions on Innovation: Upstream-Downstream Relations," Working Papers DP-2010-04, Economic Research Institute for ASEAN and East Asia (ERIA).
  • Handle: RePEc:era:wpaper:dp-2010-04
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    Cited by:

    1. Kimura, Fukunari & Obashi, Ayako, 2011. "Production Networks in East Asia: What We Know So Far," ADBI Working Papers 320, Asian Development Bank Institute.
    2. 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).
    3. 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).
    4. 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).

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