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Innovation in a Newly Industrializing Country: A Multiple Discriminant Analysis

Author

Listed:
  • Linsu Kim

    (Korea Advanced Institute of Science and Technology, P.O.B. 150, Cheongryang, Seoul, Korea)

  • Youngbae Kim

    (Korea Advanced Institute of Science and Technology, P.O.B. 150, Cheongryang, Seoul, Korea)

Abstract

This article examines 42 innovative firms in a newly industrializing country, Korea. It identifies different patterns of innovation associated with four types of firms, which is categorized by two variables: the source of initiation and the local availability of related foreign products. Bivariate analyses suggest that innovation patterns are distinctly different for Type I firms (user initiated and related foreign products locally available) and Type IV firms (innovator initiated and no related foreign products locally available). Type I firms use and benefit most from close interactions with customers and visits to the domestic users of related foreign products, while Type IV firms benefit most from the overseas observation of foreign suppliers and the assistance of local R&D institutes. The other two groups are more closely related but still different from the above two groups. The results of a multiple discriminant analysis are supportive of the patterns which emerged in the bivariate analyses. It was also found that majority of important and crucial information to solve technical problems were transferred free of charge from abroad through informal mechanisms rather than formal collaboration with foreign firms. The findings suggest that different situations call for different approaches to make innovations successful.

Suggested Citation

  • Linsu Kim & Youngbae Kim, 1985. "Innovation in a Newly Industrializing Country: A Multiple Discriminant Analysis," Management Science, INFORMS, vol. 31(3), pages 312-322, March.
    • Handle: RePEc:inm:ormnsc:v:31:y:1985:i:3:p:312-322
    DOI: 10.1287/mnsc.31.3.312
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    Citations

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    Cited by:

    1. Zhang, Feng & Zhu, Lei & Xu, Zhi & Wu, Yingying, 2023. "Moving from reverse engineering to disruptive innovation in emerging markets: The importance of knowledge creation," Technovation, Elsevier, vol. 125(C).
    2. Mohan Babu, G.N., 1999. "The Determinants of Firm-level Technological Performances - A Study on the Indian Capital Goods Sector," UNU-INTECH Discussion Paper Series 1999-01, United Nations University - INTECH.
    3. Scott A. Shane & Karl T. Ulrich, 2004. "50th Anniversary Article: Technological Innovation, Product Development, and Entrepreneurship in Management Science," Management Science, INFORMS, vol. 50(2), pages 133-144, February.
    4. Lee, Jangwoo, 1995. "Small firms' innovation in two technological settings," Research Policy, Elsevier, vol. 24(3), pages 391-401, May.
    5. Linsu Kim, 2017. "Technology Transfer & Intellectual Property Rights," Working Papers id:12348, eSocialSciences.
    6. Linsu Kim, 1998. "Crisis Construction and Organizational Learning: Capability Building in Catching-up at Hyundai Motor," Organization Science, INFORMS, vol. 9(4), pages 506-521, August.
    7. Blomstrom, Magnus & Kokko, Ari, 1997. "How foreign investment affects host countries," Policy Research Working Paper Series 1745, The World Bank.
    8. Tan, Xiaomei, 2010. "Clean technology R&D and innovation in emerging countries--Experience from China," Energy Policy, Elsevier, vol. 38(6), pages 2916-2926, June.
    9. Gebreeyesus, Mulu, 2009. "Innovation and Microenterprises Growth in Ethiopia," MERIT Working Papers 2009-053, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    10. Kim, Jai-Beom & Kim, Jai-June, 2000. "Reputation and international technology transfer: a comparative study of Japanese, European and American corporations in Korea," International Business Review, Elsevier, vol. 9(5), pages 613-624, October.

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