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SME Innovation in the Malaysian Manufacturing Sector

Author

Listed:
  • Cassey Lee

    (The University of Nottingham Malaysia Campus)

  • Lee Chew ging

    (Nottingham University Business School, The University of Nottingham Malaysia Campus)

Abstract

This paper examines the determinants of innovation amongst small and medium enterprises in the Malaysian manufacturing sector using firm-level data. For small-sized firms, younger firms are more likely to innovate compared to older firms. However, for medium-sized and large-sized firms, older firms are more likely to innovate. The extent of foreign ownership is not an important determinant of innovation. Small-sized firms with more employees are more likely to innovate. Medium-sized firms that produce for domestic market tend to be more innovative. In terms of ownership structure, medium-sized firms that are public limited companies are less likely to innovate. The relationship between technological characteristics of industry and firms' likelihood to innovate appear to be complex. Higher market concentration is associated with higher probability to innovate for medium-sized firms.

Suggested Citation

  • Cassey Lee & Lee Chew ging, 2007. "SME Innovation in the Malaysian Manufacturing Sector," Economics Bulletin, AccessEcon, vol. 12(30), pages 1-12.
    • Handle: RePEc:ebl:ecbull:eb-07l60001
    as

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    File URL: http://www.accessecon.com/pubs/EB/2007/Volume12/EB-07L60001A.pdf
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    References listed on IDEAS

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    1. Lee, Cassey, 2004. "The Determinants of Innovation in the Malaysian Manufacturing Sector: An Econometric Analysis at the Firm Level," Centre on Regulation and Competition (CRC) Working papers 30670, University of Manchester, Institute for Development Policy and Management (IDPM).
    2. Amemiya, Takeshi, 1981. "Qualitative Response Models: A Survey," Journal of Economic Literature, American Economic Association, vol. 19(4), pages 1483-1536, December.
    3. Secondo Rolfo & Giuseppe Calabrese, 2003. "Traditional SMEs and innovation: the role of the industrial policy in Italy," Entrepreneurship & Regional Development, Taylor & Francis Journals, vol. 15(3), pages 253-271, July.
    4. Zoltan J. Acs & David B. Audretsch, 2008. "Innovation in Large and Small Firms: An Empirical Analysis," Chapters, in: Entrepreneurship, Growth and Public Policy, chapter 1, pages 3-15, Edward Elgar Publishing.
    5. Tether, B. S., 1998. "Small and large firms: sources of unequal innovations?," Research Policy, Elsevier, vol. 27(7), pages 725-745, November.
    6. Mark Harris & Mark Rogers & Anthony Siouclis, 2003. "Modelling firm innovation using panel probit estimators," Applied Economics Letters, Taylor & Francis Journals, vol. 10(11), pages 683-686.
    7. Amemiya, Takeshi, 1984. "Tobit models: A survey," Journal of Econometrics, Elsevier, vol. 24(1-2), pages 3-61.
    8. Petri Rouvinen, 2002. "Characteristics of product and process innovators: some evidence from the Finnish innovation survey," Applied Economics Letters, Taylor & Francis Journals, vol. 9(9), pages 575-580.
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Armando Silva & Ana Paula Africano & Oscar Afonso, 2009. "Which Portuguese firms are more innovative? The importance of multinationals and exporters," FEP Working Papers 326, Universidade do Porto, Faculdade de Economia do Porto.
    2. Dimitrios Kafetzopoulos & Evangelos Psomas, 2016. "ORGANISATIONAL LEARNING, NON-TECHNICAL INNOVATION AND CUSTOMER SATISFACTION OF SMEs," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 20(03), pages 1-28, April.
    3. Nader Ale Ebrahim & Shamsuddin Ahmed & Zahari Taha, 2009. "Virtual R & D teams in small and medium enterprises: A literature review," Post-Print hal-00593358, HAL.
    4. Toth, Jozsef & Dries, Liesbeth & Pascucci, Stefano, 2013. "Open or Not Open? (Open Innovation in the Hungarian Wine Industry)," 87th Annual Conference, April 8-10, 2013, Warwick University, Coventry, UK 158850, Agricultural Economics Society.
    5. Cassey Lee & Dionisius Narjoko, 2015. "Escaping the Middle-Income Trap in Southeast Asia: Micro Evidence on Innovation, Productivity, and Globalization," Asian Economic Policy Review, Japan Center for Economic Research, vol. 10(1), pages 124-147, January.
    6. Eric Ramstetter, 2009. "Firm- and Plant-level Analysis of Multinationals in Southeast Asia: the Perils of Pooling Industries and Balancing Panels," Global COE Hi-Stat Discussion Paper Series gd09-106, Institute of Economic Research, Hitotsubashi University.
    7. John Lee Kean Yew, 2016. "King’s Confectionery: Transferring Tacit Knowledge from Malaysia to Bangladesh," South Asian Journal of Business and Management Cases, , vol. 5(2), pages 198-208, December.
    8. Forero, Clemente & Corredor, Sandra & Forero, Nohora, 2010. "Business Networks and Innovation in SMEs of a Developing Country," Galeras. Working Papers Series 027, Universidad de Los Andes. Facultad de Administración. School of Management.
    9. repec:wsi:acsxxx:v:21:y:2019:i:08:n:s1363919619500166 is not listed on IDEAS

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    More about this item

    JEL classification:

    • L6 - Industrial Organization - - Industry Studies: Manufacturing
    • O3 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights

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