Building Innovative Capabilities in Latecomer Emerging Market Firms: Some Key Issues
Building Innovative Capabilities in Latecomer Emerging Market Firms: Some Key Issues
This chapter draws on previous research to set the context for the new empirical studies in subsequent chapters. It opens by elaborating on basic ideas about latecomer firms, catching up, and innovation capabilities at different stages of economic growth, and then.addresses two sets of questions. The first concerns the kinds of pathways, sequences, and rates that individual latecomer firms may follow through levels and types of capability. The second is about factors that help to explain inter-firm differences in those pathways. At the micro-level, the most important of these are about the mechanisms that firms use to create successive levels of innovative capability — in particular, the intensity of management effort and financial commitment to those ‘learning’ processes. The influence of wider industry-level and economy-wide incentives and institutions is also reviewed.
Keywords: latecomer firms, innovation capabilities, capability-accumulation pathways, latecomer learning processes
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