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From new to the firm to new to the world. Effect of geographical proximity and technological capabilities on the degree of novelty in emerging economies




This paper investigates empirically what it takes for a firm to move from new to the firm to new to the domestic market and new to the world innovations. More specifically, the paper analyses the relationship between, on the one hand, the degree of novelty of product innovation and on the other hand the accumulation of technological capabilities at firm level as well as the geographical spread of the innovation activities of the firm. The analysis is based on a unique firm level data collected in Pune(India) and Beijing (China) in 2008. The paper shows that the role of the region supporting the move from new to the firm to new to the world is limited. In order to achieve a higher degree of innovation global networks are more important than local networks.

Suggested Citation

  • Plechero, Monica & Chaminade, Cristina, 2010. "From new to the firm to new to the world. Effect of geographical proximity and technological capabilities on the degree of novelty in emerging economies," Papers in Innovation Studies 2010/12, Lund University, CIRCLE - Center for Innovation, Research and Competences in the Learning Economy.
  • Handle: RePEc:hhs:lucirc:2010_012

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    References listed on IDEAS

    1. Sadowski, Bert M. & Sadowski-Rasters, Gaby, 2006. "On the innovativeness of foreign affiliates: Evidence from companies in The Netherlands," Research Policy, Elsevier, vol. 35(3), pages 447-462, April.
    2. Vega-Jurado, Jaider & Gutiérrez-Gracia, Antonio & Fernández-de-Lucio, Ignacio & Manjarrés-Henri­quez, Liney, 2008. "The effect of external and internal factors on firms' product innovation," Research Policy, Elsevier, vol. 37(4), pages 616-632, May.
    3. McKelvey, Maureen & Alm, Hakan & Riccaboni, Massimo, 2003. "Does co-location matter for formal knowledge collaboration in the Swedish biotechnology-pharmaceutical sector?," Research Policy, Elsevier, vol. 32(3), pages 483-501, March.
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    Cited by:

    1. Ping Lv & Monica Plechero & Rakesh Basant, 2013. "International competitive strategy choices: comparing firms in China and India," Asia Pacific Business Review, Taylor & Francis Journals, vol. 19(4), pages 542-558, October.
    2. Raúl Serrano & Isabel Acero-Fraile & Natalia Dejo-Oricain, 2017. "Collaborative networks and export intensity in family firms: a quantile regression approach," Documentos de Trabajo dt2017-04, Facultad de Ciencias Económicas y Empresariales, Universidad de Zaragoza.

    More about this item


    degree of novelty; technological capabilities; technological sourcing; research collaboration; region;

    JEL classification:

    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General

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