Globalization and Innovation in Indonesia: Evidence from Micro-Data on Medium and Large Manufacturing Establishments
In this paper we examine the impact of globalization on innovation in the Indonesian manufacturing sector. The lack of innovation data in the manufacturing survey has necessitated the use of R&D expenditure as an input in the innovation production function. Globalization is represented by being exporters, FDI and effective rate of protection (EPR). The model is set up such as within the concept of R&D as conditional input demand function, allowing labor productivity to have impact on R&D. In this case we find that less productive firms are less likely to venture into R&D activities. In terms of globalization variables we find that being exporters is important determinant of R&D. Meanwhile the impact of FDI firms on domestic R&D is only on the incidence not on the intensity of R&D. It will require a critical mass of firms within a location or an agglomeration to have a meaningful impact. Also lower ERP would induce firms to spend more on R&D. So lowering protection or trade barriers will have positive impact on R&D.
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- Jože P. Damijan & Črt Kostevc & Sašo Polanec, 2010. "From Innovation to Exporting or Vice Versa?," The World Economy, Wiley Blackwell, vol. 33(3), pages 374-398, 03.
- Gustavo Crespi & Chiara Criscuolo & Jonathan Haskel, 2006.
"Productivity, exporting and the learning-by-exporting hypothesis: direct evidence from UK firms,"
LSE Research Online Documents on Economics
19857, London School of Economics and Political Science, LSE Library.
- Gustavo Crespi & Chiara Criscuolo & Jonathan Haskel, 2008. "Productivity, exporting, and the learning-by-exporting hypothesis: direct evidence from UK firms," Canadian Journal of Economics, Canadian Economics Association, vol. 41(2), pages 619-638, May.
- Gustavo Crespi & Chiara Criscuolo & Jonathan Haskel, 2006. "Productivity, Exporting and the Learning-by-Exporting Hypothesis: Direct Evidence from UK Firms," Working Papers 559, Queen Mary University of London, School of Economics and Finance.
- Gustavo Crespi & Chiara Criscuolo & Jonathan Haskel, 2006. "Productivity, Exporting and the Learning-by-Exporting Hypothesis: Direct Evidence from UK Firms," CEP Discussion Papers dp0726, Centre for Economic Performance, LSE.
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