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Is that Innovation? Assessing Examples of Revitalized Economic Dynamics among Clusters of Small Producers in Northern Vietnam

Author

Listed:
  • Voeten, Jaap

    (Tilburg University)

  • Haan, Job de

    (Tilburg University)

  • Groot, Gerard de

    (Tilburg University)

Abstract

This paper addresses the question whether innovation is within reach for small enterprises in developing economies by studying four cases of new technologies, products and business practices in traditional craft in Northern Vietnam. The paper starts with reviewing definitions of innovation since Schumpeter. It concludes that newness, value creation and process are time and again considered as the key-elements of innovation. Innovation, hence, may be summarized as the process of introducing something new that creates value. Subsequently, this theoretical definition is operationalized into an innovation assessment instrument and applied in the aforementioned cases. The instrument verified the occurrence of innovation in three out of four cases of small producers' clusters in Northern Vietnam. The entrepreneurs managed to implement innovation on their own strength and upon their own initiative. This provides evidence that small enterprises in developing countries are indeed able to take part in the process of increasing competitiveness through innovation.

Suggested Citation

  • Voeten, Jaap & Haan, Job de & Groot, Gerard de, 2009. "Is that Innovation? Assessing Examples of Revitalized Economic Dynamics among Clusters of Small Producers in Northern Vietnam," MERIT Working Papers 2009-055, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    • Handle: RePEc:unm:unumer:2009055
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    Cited by:

    1. Rasheed Sulaiman V. & Laxmi Thummuru & Hall, Andy & Dijkman, Jeroen, 2009. "Tacit Knowledge and Innovation Capacity: Evidence from the Indian Livestock Sector," MERIT Working Papers 2009-058, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    2. Filippov, Sergey & Guimon, Jose, 2009. "From Quantity to Quality: Challenges for Investment Promotion Agencies," MERIT Working Papers 2009-057, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    3. Babutsidze, Zakaria, 2009. "R&D Behavior and the Emergence of Fat Tailed Firm Size Distributions," MERIT Working Papers 2009-056, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).

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    More about this item

    Keywords

    innovation; small enterprises; clusters; value chains; Vietnam;
    All these keywords.

    JEL classification:

    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives

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