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Can Host Innovation Systems in Late Industrializing Countries Benefit from the Presence of Transnational Corporations? Insights from Thailand's Manufacturing Industry

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  • Martin Berger
  • Javier Revilla Diez

Abstract

Innovation systems in late industrializing countries are said to be ill-developed and fragmented, lacking crucial key resources and access to technology and knowledge. At the same time these national innovation systems (NISs) host subsidiaries of transnational corporations, which could contribute to the development of the NIS due to their advanced technology and capabilities. This paper considers data from innovation surveys, self-assessment of technological capabilities and qualitative interview information in order to establish two things: firstly, the technological activities and capabilities of foreign affiliates and domestic firms in Thailand (as compared to Singapore, Penang and Europe), and secondly, the main mechanisms by which foreign affiliates foster upgrading in domestic firms and in the innovation systems themselves.

Suggested Citation

  • Martin Berger & Javier Revilla Diez, 2007. "Can Host Innovation Systems in Late Industrializing Countries Benefit from the Presence of Transnational Corporations? Insights from Thailand's Manufacturing Industry," European Planning Studies, Taylor & Francis Journals, vol. 16(8), pages 1047-1074, March.
    • Handle: RePEc:taf:eurpls:v:16:y:2007:i:8:p:1047-1074
    DOI: 10.1080/09654310802315708
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    References listed on IDEAS

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    1. Criscuolo, Chiara & Haskel, Jonathan E. & Slaughter, Matthew J., 2010. "Global engagement and the innovation activities of firms," International Journal of Industrial Organization, Elsevier, vol. 28(2), pages 191-202, March.
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    3. Ebersberger, Bernd & Lööf, Hans, 2005. "Innovation Behaviour and Productivity Performance in the Nordic Region Does Foreign Ownership Matter?," Working Paper Series in Economics and Institutions of Innovation 27, Royal Institute of Technology, CESIS - Centre of Excellence for Science and Innovation Studies.
    4. Gu, Shulin, 1999. "Implications Of National Innovation Systems For Developing Countries: Managing Change And Complexity In Economic Development," UNU-INTECH Discussion Paper Series 1999-03, United Nations University - INTECH.
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    Cited by:

    1. AM.Priyangani Adikari & Haiyun Liu & MMSA. Marasinghe, 2021. "Inward Foreign Direct Investment-Induced Technological Innovation in Sri Lanka? Empirical Evidence Using ARDL Approach," Sustainability, MDPI, vol. 13(13), pages 1-16, June.
    2. Betul Gur, 2020. "The Effect of Foreign Trade on Innovation: The Case of Brics-T Countries," EconWorld Working Papers 20003, WERI-World Economic Research Institute, revised May 2020.
    3. Cieślik Andrzej & Gurshev Oleg, 2020. "Determinants of inward FDI in Ukraine: Does political stability matter?," International Journal of Management and Economics, Warsaw School of Economics, Collegium of World Economy, vol. 56(3), pages 243-254, September.
    4. Kamilia Loukil, 2016. "Foreign Direct Investment And Technological Innovation In Developing Countries," Oradea Journal of Business and Economics, University of Oradea, Faculty of Economics, vol. 1(2), pages 31-40, September.
    5. Maha Mohamed Alsebai Mohamed & Pingfeng Liu & Guihua Nie, 2021. "Are Technological Innovation and Foreign Direct Investment a Way to Boost Economic Growth? An Egyptian Case Study Using the Autoregressive Distributed Lag (ARDL) Model," Sustainability, MDPI, vol. 13(6), pages 1-28, March.
    6. Nguyen, Thi Xuan Thu & Diez, Javier Revilla, 2019. "Less than expected—The minor role of foreign firms in upgrading domestic suppliers—The case of Vietnam," Research Policy, Elsevier, vol. 48(6), pages 1573-1585.
    7. Andrzej Cieślik & Jan Jakub Michałek & Krzysztof Szczygielski & Jacek Lewkowicz & Jerzy Mycielski, 2021. "Foreign Ownership and Within-MNEs GVC Participation as Determinants of Innovation Activities: A CIS-Based Firm-Level Analysis," Central European Journal of Economic Modelling and Econometrics, Central European Journal of Economic Modelling and Econometrics, vol. 13(2), pages 189-211, June.

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