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Institutional support, innovation capabilities and exports: Evidence from the semiconductor industry in Taiwan

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  • Rasiah, Rajah
  • Shahrivar, Rafat Beigpoor
  • Yap, Xiao-Shan

Abstract

This paper examines the relationship between host-site institutional support, innovation capabilities and exports using data from a survey of 50 Taiwan semiconductor firms. The major questions asked in the paper are whether host-site institutional support is important in stimulating firm-level innovation capability, and whether the latter is important in firms' exports. An evolutionary perspective was used to measure innovation capabilities using knowledge embodied in machinery, training, processes and products. The statistical results show that innovation capability is correlated with institutional support. In addition, the findings also indicate that innovation capabilities (IC) enjoy a positive relationship with exports. The control variable of size had a positive effect in innovation capabilities and in exports, while human capital was critical in exports. The supply of R&D grants, R&D engineers and scientists, and support from universities and R&D labs has been viewed by firms as important in supporting innovation capability and semiconductor exports.

Suggested Citation

  • Rasiah, Rajah & Shahrivar, Rafat Beigpoor & Yap, Xiao-Shan, 2016. "Institutional support, innovation capabilities and exports: Evidence from the semiconductor industry in Taiwan," Technological Forecasting and Social Change, Elsevier, vol. 109(C), pages 69-75.
    • Handle: RePEc:eee:tefoso:v:109:y:2016:i:c:p:69-75
    DOI: 10.1016/j.techfore.2016.05.015
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    8. Forson, Joseph Ato, 2017. "Innovation Financing and Public Policy Dilemmas in the Economic Community of West African States (ECOWAS)," MPRA Paper 102432, University Library of Munich, Germany, revised 20 Aug 2019.
    9. Wu, Lichao & Wei, Yingqi & Wang, Chengang, 2021. "Disentangling the effects of business groups in the innovation-export relationship," Research Policy, Elsevier, vol. 50(1).
    10. Hameeda A. AlMalki & Christopher M. Durugbo, 2023. "Systematic review of institutional innovation literature: towards a multi-level management model," Management Review Quarterly, Springer, vol. 73(2), pages 731-785, June.
    11. Ju Han Yeon & Seung-hwan Jang, 2023. "The Relation between Bio-Industry Performance and Innovation Capacity—Focusing on the Korean Bio-Industry," Sustainability, MDPI, vol. 15(9), pages 1-17, April.
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    14. Donbesuur, Francis & Zahoor, Nadia & Boso, Nathaniel, 2022. "International network formation, home market institutional support and post-entry performance of international new ventures," International Business Review, Elsevier, vol. 31(3).
    15. Jian Hou & Jiancheng Chen & Hongfeng Song & Gang Wang, 2018. "Are Non-R&D Innovation Activities Actually Effective for Innovation Sustainability? Empirical Study from Chinese High-Tech Industry," Sustainability, MDPI, vol. 11(1), pages 1-14, December.
    16. Jie Yang & Mingxing Yu, 2022. "The Influence of Institutional Support on the Innovation Performance of New Ventures: The Mediating Mechanism of Entrepreneurial Orientation," Sustainability, MDPI, vol. 14(4), pages 1-15, February.
    17. Forson, Joseph Ato & Opoku, Rosemary Afrakomah & Peng, Zhen, 2017. "Innovation, Institutions and Economic Growth in Sub-Sahara Africa – an IV Estimation of a Panel Threshold Model," MPRA Paper 103063, University Library of Munich, Germany, revised 15 Mar 2018.
    18. Li, Hongkuan & He, Haiyan & Shan, Jiefei & Cai, Jingjing, 2019. "Innovation efficiency of semiconductor industry in China: A new framework based on generalized three-stage DEA analysis," Socio-Economic Planning Sciences, Elsevier, vol. 66(C), pages 136-148.
    19. Wu, Lichao & Wei, Yingqi & Wang, Chengang & McDonald, Frank & Han, Xia, 2022. "The importance of institutional and financial resources for export performance associated with technological innovation," Technological Forecasting and Social Change, Elsevier, vol. 185(C).
    20. Chollet, Barthélemy & Revet, Karine, 2023. "Digging deep or scratching the surface? Contingent innovation outcomes of seeking advice from geographically distant ties," Technological Forecasting and Social Change, Elsevier, vol. 189(C).
    21. Barbieri, Elisa & Di Tommaso, Marco R. & Pollio, Chiara & Rubini, Lauretta, 2020. "Getting the specialization right. Industrialization in Southern China in a sustainable development perspective," World Development, Elsevier, vol. 126(C).

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