Complementarity between internal knowledge creation and external knowledge sourcing in developing countries

Hou, Jun and Mohnen, Pierre (2013). Complementarity between internal knowledge creation and external knowledge sourcing in developing countries. UNU-MERIT.

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  • Author Hou, Jun
    Mohnen, Pierre
    Title Complementarity between internal knowledge creation and external knowledge sourcing in developing countries
    Publication Date 2013
    Publisher UNU-MERIT
    Abstract In developing countries, innovation is to a large extent a matter of adoption of advanced technologies but also of conducting internal R&D to be able to better assimilate existing technologies. This paper, based on firm level data from 24 developing countries, examines the roles of internal R&D efforts (MAKE) and external technology sourcing (BUY) in fostering productivity in manufacturing firms. Is MAKE a substitute for BUY or are the two strategies complementary as evidenced in some developed countries? Our empirical investigation highlights the critical role of external technology acquisition in manufacturing industries in low-income countries and exhibits signs of complementarity only in middle-income countries.
    Keyword Innovation
    Make and buy
    Complementarity
    Developing countries
    JEL O13
    O33
    D22
    Copyright Holder UNU-MERIT
    Copyright Year 2013
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    Created: Wed, 11 Dec 2013, 17:14:40 JST