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Knowledge Flows, Organization and Innovation: Firm-Level Evidence from Malaysia

  • Cassey LEE

    (Cassey LEE School of Economics, University of Wollongong, Australia)

Technological upgrading of a countryfs manufacturing sector requires the enhancement of firm-level capabilities. Knowledge flows within firms and those between firms and other entities are important aspects of this process. The nature and significance of such knowledge flows for innovation-related activities (such as in-house R&D, acquisition of technology-embedded investments and training) are likely to differ for each type of activity. The links between innovation and knowledge flows are particularly important for innovation activities in the form of acquisition of machinery, equipment and software. There is also some weak evidence that globalization-related variables such as foreign direct investment and exporting can affect certain types of innovation activities such as training and acquisition of machinery, equipment and software. This study also finds that firm-level organizational dimensions and innovations are related to both internal and external knowledge flows. However, there is evidence that the links between innovative firms in Malaysia and other firms abroad in terms of co-operative activities are relatively weak. This raises the issue of whether such firms are able to tap the global technological-pool effectively.

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Paper provided by Economic Research Institute for ASEAN and East Asia (ERIA) in its series Working Papers with number DP-2012-11.

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Length: 44 pages.
Date of creation: 01 Jun 2012
Date of revision:
Handle: RePEc:era:wpaper:dp-2012-11
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  1. Rachel Griffith & Elena Huergo & Jacques Mairesse & Bettina Peters, 2006. "Innovation and Productivity across Four European Countries," NBER Working Papers 12722, National Bureau of Economic Research, Inc.
  2. Naghavi, Alireza & Ottaviano, Gianmarco, 2006. "Outsourcing, Complementary Innovations and Growth," CEPR Discussion Papers 5925, C.E.P.R. Discussion Papers.
  3. Kazunobu HAYAKAWA & Fukunari KIMURA & Tomohiro MACHIKITA, 2009. "Firm-level Analysis of Globalization: A Survey," Working Papers d008, Economic Research Institute for ASEAN and East Asia (ERIA).
  4. 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.
  5. Criscuolo, Chiara & Haskel, Jonathan E. & Slaughter, Matthew J., 2010. "Global engagement and the innovation activities of firms," International Journal of Industrial Organization, Elsevier, vol. 28(2), pages 191-202, March.
  6. repec:crs:wpaper:9833 is not listed on IDEAS
  7. Jacques Mairesse & Pierre Mohnen, 2010. "Using Innovation Surveys for Econometric Analysis," CIRANO Working Papers 2010s-15, CIRANO.
  8. Bruno Crepon & Emmanuel Duguet & Jacques Mairesse, 1998. "Research, Innovation And Productivity: An Econometric Analysis At The Firm Level," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 7(2), pages 115-158.
  9. Gustavo Crespi & Chiara Criscuolo & Jonathan Haskel & Matthew Slaughter, 2007. "Productivity Growth, Knowledge Flows and Spillovers," CEP Discussion Papers dp0785, Centre for Economic Performance, LSE.
  10. Naghavi, Alireza & Ottaviano, Gianmarco, 2006. "Offshoring and Product Innovation," CEPR Discussion Papers 6008, C.E.P.R. Discussion Papers.
  11. Elisabeth Kremp & Jacques Mairesse, 2004. "Knowledge Management, Innovation, and Productivity: A Firm Level Exploration Based on French Manufacturing CIS3 Data," NBER Working Papers 10237, National Bureau of Economic Research, Inc.
  12. Hart, Oliver, 1995. "Firms, Contracts, and Financial Structure," OUP Catalogue, Oxford University Press, number 9780198288817, July.
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