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

Machikita, Tomohiro and Ueki, Yasushi (2011) The Impact of Face-to-face and Frequent Interactions on Innovation: Evidence from Upstream-Downstream Relations. Institutions and Economies, 3 (3). pp. 519-548.

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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.

Item Type: Article
Uncontrolled Keywords: exchanges of engineer, innovation, insider econometrics, just-in-time, status quo
Subjects: H Social Sciences > HC Economic History and Conditions
T Technology > T Technology (General)
Depositing User: MS NURUL SYAFIQAH RAMALIM
Date Deposited: 31 Jul 2013 03:11
Last Modified: 31 Jul 2013 03:11
URI: http://repository.um.edu.my/id/eprint/1170

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