Impact of Foreign Linkages on Innovation Activity of Manufacturing Firms in CALABARZON ; Philippine Journal of Development ; Volume 44 Number 1.

Autor/Urheber	Francis Mark A. Quimba; Sylwyn C. Calizo Jr
Titel	Impact of Foreign Linkages on Innovation Activity of Manufacturing Firms in CALABARZON ; Philippine Journal of Development ; Volume 44 Number 1.
Quelle	Philippine Institute for Development Studies (2018) PDF als Volltext kostenfreie Datei
Sprache	englisch
Dokumenttyp	online; Monographie
Schlagwörter	Commerce and Industry; Intra-Industry Trade; Electronics Industry; Computer Industry; Vocational Education; Technical Education; Quality Education; Primary Education; Educational Systems; Industry; Development cooperation; Innovation; Industrialization; Industrial Economics; Industrial Development; Industrial Policy; Technology assessment; Technological institutes; Employment; Information Media; Mass Media; Export Oriented Industries; Electronics; Computers; Telecommunications Industry; Manufacturing Industries; Microprocessors; Electronic Equipment; Communication Industry; Training programs; Vocational training; Training methods; Economic growth; Training courses; Educational aspects; Compulsory education; Economics of education; Educational policy; Industrial Projects; Industrial Products; Industrial Sector; Economic zones; Microelectronics industry; Electronic industries; Digital electronics; Microelectronics; Podcasts; Music videos; Internet videos; Interactive videos; Videos; Video recordings; TV; Mobile communication systems; Sound recordings; Motion pictures; Automation; Educational innovations; Technical institutes; Engineering schools
Abstract	Despite several studies exploring innovation activities in the Philippines, no clear answer has been provided to the question of whether having foreign linkages can induce knowledge transfer and innovation. This study probes deeper into the role of foreign linkages in the innovation activities of manufacturing firms in the CALABARZON (Cavite, Laguna, Batangas, Rizal, and Quezon provinces) region. Using a probit estimation and an IV regression to control for endogeneity brought by omitted variable bias, the results show that foreign linkages can positively affect a firm's likelihood to undertake product innovation that involves the development of a new product using technology new to the firm. On the other hand, process innovation has consistently shown to be positively influenced by foreign linkages. These results indicate that having foreign linkages and participating in the global value chain can have a positive impact on both process and product innovations. Thus, it is important to highlight the need to promote stronger regional and global linkages to sustain the manufacturing growth in CALABARZON. Moreover, trainings that teach the 5S system through government channels such as the Technical Education and Skills Development Authority and state universities and colleges are as important. Highlighting the role of industrial parks and recognizingthe value of establishment-level data are also key points in this study.
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