Linked versus Non-linked Firms in Innovation: The Effects of Economies of Network in Agglomeration in East Asia

Tomohiro Machikita and Yasushi Ueki

No 188, IDE Discussion Papers from Institute of Developing Economies, Japan External Trade Organization(JETRO)

Abstract: This paper proposes a new mechanism linking innovation and network in developingeconomies to detect explicit production and information linkages and investigatesthe testable implications of these linkages using survey data gathered from manufacturing firmsin East Asia. We found that firms with more information linkages tend to innovate more,have a higher probability of introducing new goods, introducing new goods to new marketsusing new technologies, and finding new partners located in remote areas. We also foundthat firms that dispatched engineers to customers achieved more innovations than firms thatdid not. These findings support the hypothesis that production linkages and face‐to‐facecommunication encourage product and process innovation.

Keywords: Southeast Asia; East Asia; Technological innovations; Manufacturing industries; Network; Communication; Business enterprises; Engineer Mobility; Innovation; Linkages (search for similar items in EconPapers)
JEL-codes: D83 L25 O31 O32 O33 R12 (search for similar items in EconPapers)
Date: 2009-03-01
New Economics Papers: this item is included in nep-cse, nep-ino, nep-net and nep-sea
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

Published in IDE Discussion Paper = IDE Discussion Paper, No. 188. 2009-03-01

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