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Harnessing Foreign Technology to Improve Firm Performance: Evidence from Philippine Manufacturing Enterprises

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  • Raymond Gaspar

    (Asian Development Bank Institute)

Abstract

We examine the impact of foreign-licensed technology and identifies channels to effectively leverage such technology to improve the performance of manufacturing firms in the Philippines. Using the fixed effects approach to World Bank Enterprise Survey panel data for the Philippines covering 2009 and 2015, we find no statistically significant impact of introducing foreign-licensed technology to manufacturing firms in terms of annual sales, employment, and energy intensity. Interestingly, the impact is more pronounced and significant among manufacturing firms that conduct workforce trainings, thereby improving absorptive capacity through better quality of labor. The empirical findings call for the Philippine government to bolster skills training and human capital formation initiatives, further incentivizing in-house training, to support the advancement of local absorptive capacity and better assimilate the use of foreign technologies.

Suggested Citation

  • Raymond Gaspar, 2022. "Harnessing Foreign Technology to Improve Firm Performance: Evidence from Philippine Manufacturing Enterprises," ADBI Working Papers 1321, Asian Development Bank Institute.
    • Handle: RePEc:ris:adbiwp:1321
    as

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    References listed on IDEAS

    as
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    5. Llanto, Gilberto M. & Serafica, Ramonette B. & Albert, Jose Ramon G. & Quimba, Francis Mark A. & Vizmanos, Jana Flor V. & Bairan, Jose Carlos Alexis C., 2017. "Measuring and Examining Innovation in Philippine Business and Industry," Discussion Papers DP 2017-28, Philippine Institute for Development Studies.
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    7. Belderbos, Rene & Ito, Banri & Wakasugi, Ryuhei, 2008. "Intra-firm technology transfer and R&D in foreign affiliates: Substitutes or complements? Evidence from Japanese multinational firms," Journal of the Japanese and International Economies, Elsevier, vol. 22(3), pages 310-319, September.
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    technology transfer; technology licensing; firm performance; local absorptive capacity; Philippines;
    All these keywords.

    JEL classification:

    • L24 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Contracting Out; Joint Ventures
    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
    • L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General

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