The Impact of Face-to-face and Frequent Interactions on Innovation: Evidence from Upstream-Downstream Relations

Tomohiro Machikita and Yasushi Ueki

Institutions and Economies (formerly known as International Journal of Institutions and Economies), 2011, vol. 3, issue 3, 519-548

Abstract: This paper proposes a new mechanism linking innovation and networks in developing economies to identify explicit production and information linkages. We investigate the testable hypotheses of these linkages using survey data gathered from manufacturing firms in East Asia: Indonesia, Thailand, the Philippines, and Vietnam. We found that firms that dispatched engineers to customers achieved more product and process innovations than firms that did not. Just-in-time relationship is effective for dealing with process innovation. We found that such strong complementarities as Just-in-time are not effective for product innovation. These findings support the hypothesis that face-to-face communication and strong complementarities among buyer-seller networks have different roles in product and process innovation.

Keywords: - exchanges of engineer; innovation; insider econometrics; just-in-time; status quo (search for similar items in EconPapers)
JEL-codes: O31 O32 R12 (search for similar items in EconPapers)
Date: 2011
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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Persistent link: https://EconPapers.repec.org/RePEc:umk:journl:v:3:y:2011:i:3:p:519-548

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