Dynamics of innovation and internationalization among small and medium-sized enterprises in Viet Nam

Arbeitspapier

This paper examines the bidirectional causality between innovation and internationalization in the context of developing countries. Using a dynamic bivariate probit model and adopting a broad definition of internationalization, this paper analyzes these issues using a panel dataset of small and medium-sized enterprises in Viet Nam. The results show a high persistence in process and product innovations and internationalization decisions. Furthermore, we find that, for non-micro firms, past internationalization has a positive effect on process innovation, but past process innovation does not have a significant effect on the internationalization decision. For this group of firms, we also find signs of cross-dependence between process innovation and the internationalization decision. Our results, however, do not show dynamic interdependence between internationalization and product innovation.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: ADBI Working Paper ; No. 580

Classification and Topics

• Classification: Wirtschaft ; Firm Objectives, Organization, and Behavior: General ; Firm Performance: Size, Diversification, and Scope ; Innovation and Invention: Processes and Incentives
• Subject: SME internationalization and innovation ; process innovation ; cross-dependence ; product innovation

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Trinh, Long Q.
• Event: Veröffentlichung
• (who): Asian Development Bank Institute (ADBI)
• (where): Tokyo
• (when): 2016

Further information

• Handle: http://hdl.handle.net/10419/161456
• Last update: 10.03.2025, 11:42 AM CET