Can Host Innovation Systems in Late Industrializing Countries Benefit from the Presence of Transnational Corporations? Insights from Thailand's Manufacturing Industry

Martin Berger and Javier Revilla Diez

European Planning Studies, 2007, vol. 16, issue 8, 1047-1074

Abstract: Innovation systems in late industrializing countries are said to be ill-developed and fragmented, lacking crucial key resources and access to technology and knowledge. At the same time these national innovation systems (NISs) host subsidiaries of transnational corporations, which could contribute to the development of the NIS due to their advanced technology and capabilities. This paper considers data from innovation surveys, self-assessment of technological capabilities and qualitative interview information in order to establish two things: firstly, the technological activities and capabilities of foreign affiliates and domestic firms in Thailand (as compared to Singapore, Penang and Europe), and secondly, the main mechanisms by which foreign affiliates foster upgrading in domestic firms and in the innovation systems themselves.

Date: 2007
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DOI: 10.1080/09654310802315708

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