Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/101208
Authors: 
Machikita, Tomohiro
Ueki, Yasushi
Year of Publication: 
2012
Series/Report no.: 
ADBI Working Paper Series 399
Abstract: 
This paper presents a simple model of industrial upgrading as a result of backward and forward information linkages between upstream and downstream relations. It also serves as an empirical investigation of the impact of mutual knowledge exchange on the knowledge production function using data on firms' self-reported customers and suppliers. Evidence from interconnected firms in Indonesia, Thailand, Philippines, and Viet Nam suggests that there are strong spillover effects between downstream and upstream firms in terms of international standard certification. The degree of product and process innovation is quite diverse across manufacturing firms within a local supply chain and within a global supply chain. Firms are likely to achieve product innovation if they have customers in foreign countries. Customers in Japan and the People's Republic of China play an important product innovation role for firms in Association of Southeast Asian Nations (ASEAN) economies, and customers in the United States or Europe play an important industrial upgrading role in connecting ASEAN firms with the global market.
Subjects: 
innovation
international production organization
backward forward linkages
JEL: 
O31
O32
R12
Document Type: 
Working Paper

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