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Beyond technological catch‐up : An empirical investigation of further innovative capability accumulation outcomes in latecomer firms with evidence from Brazil

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  • Figueiredo P.N.

    (UNU-MERIT)

Abstract

This article examines outcomes that are achieved by latecomer firms from the accumulation of innovative capabilities. Drawing on fieldwork evidence from pulp and paper firms in Brazil 1950-2010, it was found that 1 the firms accumulated innovative capabilities that turned them into world leaders in the segment of the global pulp and paper industry based on eucalyptus forestry; 2 besides thistechnological catch-up, the accumulation of these innovative capabilities resulted in outcomes that generated benefits within these firms such as i implemented inventive and innovative activities; ii consistent improvement of several parameters of operational and environment-related performance; iii varied patterns of corporate growth; 3 these outcomes were achieved not only by research-based and patent-related capabilities but mainly by a mix of innovative capability levels, with differing degrees of novelty and complexity for diverse technological functions. Therefore, the accumulation of a wide range of types and levels of innovative capabilities does pay off for the innovative firms, their industries and, ultimately, their economies. By combining a novel approach to examining firm capabilities with findings from an inductive fieldwork, this article provides new empirical and methodological insights for the longstanding debate on innovative capabilities as the fundamental source of firm competitive performance. The article draws managers attention to the importance of a multiplicity of types and levels ofcapabilities to achieve relevant outcomes, and policy makers in developing economies to adopt a comprehensive view on innovative activities and place firm-centred innovation capability accumulation at the centre of industrial innovation policies.

Suggested Citation

  • Figueiredo P.N., 2013. "Beyond technological catch‐up : An empirical investigation of further innovative capability accumulation outcomes in latecomer firms with evidence from Brazil," MERIT Working Papers 2013-048, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    • Handle: RePEc:unm:unumer:2013048
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    References listed on IDEAS

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    1. Adegbesan, Tunji & Ricart, Joan E., 2007. "What do we really know about when technological innovation improves performance (and when it does not)?," IESE Research Papers D/668, IESE Business School.
    2. Norlela Ariffin & Paulo Figueiredo, 2004. "Internationalization of innovative capabilities: counter-evidence from the electronics industry in Malaysia and Brazil," Oxford Development Studies, Taylor & Francis Journals, vol. 32(4), pages 559-583.
    3. Dantas, Eva & Bell, Martin, 2009. "Latecomer firms and the emergence and development of knowledge networks: The case of Petrobras in Brazil," Research Policy, Elsevier, vol. 38(5), pages 829-844, June.
    4. Amann, Edmund & Cantwell, John (ed.), 2012. "Innovative Firms in Emerging Market Countries," OUP Catalogue, Oxford University Press, number 9780199646005.
    5. Kathleen M. Eisenhardt & Jeffrey A. Martin, 2000. "Dynamic capabilities: what are they?," Strategic Management Journal, Wiley Blackwell, vol. 21(10‐11), pages 1105-1121, October.
    6. Boehe, Dirk Michael, 2007. "Product development in MNC subsidiaries: Local linkages and global interdependencies," Journal of International Management, Elsevier, vol. 13(4), pages 488-512, December.
    7. Norlela Ariffin, 2010. "Internationalisation of technological innovative capabilities: levels, types and speed (learning rates) in the electronics industry in Malaysia," International Journal of Technological Learning, Innovation and Development, Inderscience Enterprises Ltd, vol. 3(4), pages 347-391.
    8. Giovanni Dosi, 2000. "Sources, Procedures, and Microeconomic Effects of Innovation," Chapters, in: Innovation, Organization and Economic Dynamics, chapter 2, pages 63-114, Edward Elgar Publishing.
    9. Amsden, Alice H. & Tschang, F. Ted, 2003. "A new approach to assessing the technological complexity of different categories of R&D (with examples from Singapore)," Research Policy, Elsevier, vol. 32(4), pages 553-572, April.
    10. Michiel Van Dijk & Martin Bell, 2007. "Rapid Growth with Limited Learning: Industrial Policy and Indonesia's Pulp and Paper Industry," Oxford Development Studies, Taylor & Francis Journals, vol. 35(2), pages 149-169.
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    Cited by:

    1. Ronaldo Parente & Marne Melo & Daniel Andrews & Arun Kumaraswamy & Flavio Vasconcelos, 2021. "Public sector organizations and agricultural catch-up dilemma in emerging markets: The orchestrating role of Embrapa in Brazil," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 52(4), pages 646-670, June.
    2. Xiaoli Li & Hongqi Wang, 2021. "An Exploratory Study of How Latecomers Transform Strategic Path in Catch-Up Cycle," Sustainability, MDPI, vol. 13(9), pages 1-25, April.
    3. Figueiredo, Paulo N., 2016. "New challenges for public research organisations in agricultural innovation in developing economies: Evidence from Embrapa in Brazil's soybean industry," The Quarterly Review of Economics and Finance, Elsevier, vol. 62(C), pages 21-32.
    4. Figueiredo, Paulo N., 2016. "Evolution of the short-fiber technological trajectory in Brazil's pulp and paper industry: The role of firm-level innovative capability-building and indigenous institutions," Forest Policy and Economics, Elsevier, vol. 64(C), pages 1-14.
    5. Byungjoo Paek & Heesang Lee, 2018. "Strategic entrepreneurship and competitive advantage of established firms: evidence from the digital TV industry," International Entrepreneurship and Management Journal, Springer, vol. 14(4), pages 883-925, December.
    6. Mingook Lee & Sungjoo Lee, 2016. "Evaluating Internal Technological Capabilities in Energy Companies," Energies, MDPI, vol. 9(3), pages 1-23, March.
    7. Jingxian Gan & Yong Qi & Chen Tian, 2019. "The Construction and Evolution of Technological Innovation Ecosystem of Chinese Firms: A Case Study of LCD Technology of CEC Panda," Sustainability, MDPI, vol. 11(22), pages 1-30, November.

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    More about this item

    Keywords

    International Business Administration; Management of Technological Innovation and R&D; Agricultural R&D; Agricultural Technology; Biofuels; Agricultural Extension Services; Agricultural Policy; Food Policy;
    All these keywords.

    JEL classification:

    • M16 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - International Business Administration
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D
    • Q16 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - R&D; Agricultural Technology; Biofuels; Agricultural Extension Services
    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy; Animal Welfare Policy

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