Distance to the Frontier and Innovation: The Role of Local Business Environment

Pham Thi Huyen Trang () and Vu Nam ()
Additional contact information
Pham Thi Huyen Trang: School of Economics and International Business, Foreign Trade University

Malaysian Journal of Economic Studies, 2020, vol. 57, issue 1, 21-37

Abstract: This study uses panel data from biennially surveys of small and medium-sized enterprises during the period of 2005-2015 in the transition economy of Vietnam, and data on the quality of local business environment (measured by the provincial competitiveness index). This study uncovers that the effects of distance to the frontier (measured by the ratio of productivity of an enterprise to that of the industry leader) on innovation are negatively moderated by improved local business environment. Such an important role of the local business environment indicates that laggard enterprises, which form the majority in transition economies, are favourably supported to achieve innovation when quality of the local business environment is improved.

Keywords: Innovation; frontier; business environment; Vietnam (search for similar items in EconPapers)
JEL-codes: L22 O31 O33 (search for similar items in EconPapers)
Date: 2020
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:mjr:journl:v:57:y:2020:i:1:p:21-37

DOI: 10.22452/MJES.vol57no1.2

Access Statistics for this article

Malaysian Journal of Economic Studies is currently edited by Lim Kian Ping

More articles in Malaysian Journal of Economic Studies from Faculty of Business and Economics, University of Malaya & Malaysian Economic Association Contact information at EDIRC.
Bibliographic data for series maintained by Malaysian Economic Association ().