Industrial upgrading, exploitative innovations and explorative innovations

Arash Azadegan and Stephan M. Wagner

International Journal of Production Economics, 2011, vol. 130, issue 1, 54-65

Abstract: Industrial upgrading (IU), the stepwise development of manufacturing skills from simple to more complicated tasks, can be a highly effective approach for late entrants. IU relies on a sequential and paced approach to develop progressively more complicated industry-established practices. We explore the effects of IU on innovation performance. Using path analysis on a sample of 353 manufacturers, we show that firms can progress from lower rungs of manufacturing and design to higher rungs. Progression afforded through IU result in a positive association with exploitative innovations, which partially mediate the effect of IU on explorative innovations.

Keywords: Industrial; upgrading; Cumulative; capabilities; Organizational; learning; Innovation (search for similar items in EconPapers)
Date: 2011
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Citations: View citations in EconPapers (24)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:proeco:v:130:y:2011:i:1:p:54-65

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