Firm-Level Upgrading in Developing Countries

Eric Verhoogen

No 29461, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: In principle, firms in developing countries benefit from the fact that advanced technologies and products have already been developed in industrialized countries and can simply be adopted, a process often referred to as industrial upgrading. But for many firms this advantage remains elusive. What is getting in the way? This paper reviews recent firm-level empirical research on the determinants of upgrading in developing countries. The first part focuses on how to define and measure various dimensions of upgrading --- learning, quality upgrading, technology adoption, and product innovation. The second part takes stock of recent micro-empirical evidence on the drivers of upgrading, classifying them as output-side drivers, input-side drivers, or drivers of know-how. The review concludes with some thoughts about promising directions for research in the area.

JEL-codes: F1 L2 O1 (search for similar items in EconPapers)
Date: 2021-11
New Economics Papers: this item is included in nep-sbm and nep-tid
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Citations: View citations in EconPapers (13)

Published as Eric Verhoogen, 2023. "Firm-Level Upgrading in Developing Countries," Journal of Economic Literature, vol 61(4), pages 1410-1464.

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Related works:
Journal Article: Firm-Level Upgrading in Developing Countries (2023)
Working Paper: Firm-Level Upgrading in Developing Countries (2021)
Working Paper: Firm-Level Upgrading in Developing Countries (2021)
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