Globalization and innovation: Evidence from Vietnamese small and medium sized enterprises
DOI:
https://doi.org/10.58567/eal02040004Keywords:
Globalization, Innovation, Vietnam’s SMEsAbstract
The purpose of this research is to investigate how globalization affects innovation in Vietnam’s small and medium sized enterprises (SMEs). Utilizing Probit model and the data from Vietnam’s SMEs Survey during the period 2005-2015, the research examines the micro and macro effects of globalization on the innovation of these businesses. The main results show that at macro level, globalization is negatively correlated with innovation. However, at micro level, increasing competition pressure and knowledge transfer due to globalization are positively correlated with innovation of Vietnam’s SMEs.
References
Beroc, M. A. (2015). Does Gender Matter for the Innovativeness of SMEs?. FREE Policy Brief Series. https://beroc.org/upload/iblock/d2e/d2e4898888f30a678522d96d528aa579.pdf
Bertschek, I. (1995). Product and process innovation as a response to increasing imports and foreign direct investment. The Journal of Industrial Economics, 43(4), 341–357. https://doi.org/10.2307/2950548
Bordo M. D., Eichengreen B., Irwin A. D, Frankel J and Taylor M. A. (1999). Is Globalization Today Really Different than Globalization a Hunderd Years Ago. NBER Working Paper No. W7195. https://eml.berkeley.edu/~eichengr/research/brooking.pdf
Braga, H., & Willmore, L. (1991). Technological imports and technological effort: an analysis of their determinants in Brazilian firms. The Journal of Industrial Economics, 421–432. https://doi.org/10.2307/2098441
Chen, V.Z., Li, J., Shapiro, D.M. and Zhang, X. (2014). Ownership structure and innovation: an emerging market perspective. Asia Pacific Journal of Management, Vol. 31 No. 1, pp. 1-24. https://doi.org/10.1007/s10490-013-9357-5
Choi, S. B., Park, B. I., & Hong, P. (2012). Does ownership structure matter for firm technological innovation performance? The case of Korean firms. Corporate Governance: An International Review, 20(3), 267–288. https://doi.org/10.1111/j.1467-8683.2012.00911.x
CIEM (2016). Characteristics of the Vietnamese Business Environment: Evidence from An SME Survey in 2015. Hanoi. https://www.wider.unu.edu/publication/characteristics-vietnamese-business-environment
CIEM, ILSSA, UCPH and UNU-WIDER (2005, 2007, 2009, 2011, 2013 and 2015). Viet Nam SME Survey. Retrive from https://www.wider.unu.edu/database/viet-nam-sme-database on May 25, 2023.
Clark, W. C. (2000). Governance in a Globalizing World. Environmental Globalization, p. 86–108. Brookings Institution Press. https://www.brookings.edu/books/governance-in-a-globalizing-world
Danaeefard, H., & Abbasi, T. (2011). Globalization and global innovations. In the P. Pachura (Eds.), The systemic dimension of globalization. IntechOpen. https://doi.org/10.5772/17282
Dreher, A. (2006). Does Globalization Affect Growth? Evidence from A New Index of Globalization. Applied Economics, 38(10), 1091–1110. https://doi.org/10.1080/00036840500392078
Dreher, A., Gaston, N. and Martens, P. (2008). Measuring Globalization - Gauging Its Consequences. New York: Springer. https://doi.org/10.1007/978-0-387-74069-0
Gorodnichenko, Y., Svejnar J, and Terrell K. (2011). Globalization and Innovation in Emerging Markets. American Economic Journal: Macroeconomics, 2 (2): 194-226. https://doi.org/10.1257/mac.2.2.194
Grossman, G. and Helpman, E., 1990. Trade, Knowledge Spillovers, and Growth. European Economic Review, Vol. 35, pp. 517-526. https://doi.org/10.1016/0014-2921(91)90153-A
Gygli, S., Haelg, F., Potrafke, P., & Sturm, J. E. (2019). The KOF globalisation index - revisited. Review of International Organizations. https://doi.org/10.1007/s11558-019-09344-2
Hahn, C. H. and D. Narjoko (2011). Globalization and Innovation in East Asia, in Hahn, C. H. and D. Narjoko (eds.), Globalization and Innovation in East Asia. ERIA Research Project Report 2010-04, pp.1-19. Jakarta: ERIA. https://www.eria.org/uploads/media/Research-Project-Report/RPR_FY2010_4_Chapter_1.pdf
Howitt, P. (2000). Endogenous Growth and Cross-Country Income Differences. American Economic Review, 90 (September 2000): 829-46. https://doi.org/10.1257/aer.90.4.829
https://www.oecd.org/cfe/smesentrepreneurshipandinnovation.htm
Kuncoro A. (2012). Globalization and Innovation in Indonesia: Evidence from Micro-Data on Medium and Large Manufacturing Establishments. Working Papers DP-2012-09, Economic Research Institute for ASEAN and East Asia (ERIA). https://www.eria.org/ERIA-DP-2012-09.pdf
Michie, J. (1998). Introduction: The internationalisation of the innovation process. International Journal of the Economics of Business, 5(3), 261–277. https://doi.org/10.1080/13571519884387
Nguyen, N. A., P. M. Nguyen, D. N. Nguyen and D. C. Nguyen (2011). Trade Liberalization and Innovation Linkages Micro-evidence from Vietnam SME Surveys, in Hahn, C. H. and D. Narjoko (eds.), Globalization and Innovation in East Asia. ERIA Research Project Report 2010-04, pp.315-340. Jakarta: ERIA. https://www.eria.org/uploads/media/Research-Project-Report/RPR_FY2010_4_Chapter_9.pdf
Niklas Potrafke (2015). The Evidence on Globalisation. The World Economy, 38(3), 509-552. https://doi.org/10.1111/twec.12174
OECD (2010). SMEs, Entrepreneurship and Innovation. Organisation for Economic Co-operation and Development.
Rodil, O., Vence, X., & del Carmen Sánchez, M. (2015). The relationship between innovation and export behaviour: the case of Galician firms. Technological Forecasting and Social Change, 113, 248–265. https://doi.org/10.1016/j.techfore.2015.09.002
Romer, P. M. (1990). Endogenous Technological Change. Journal of Political Economy 98(5): S71-S102. http://dx.doi.org/10.1086/261725
Romer, P.M. (1986). Increasing Returns and Long-Run Growth. Journal of Political Economy, 94, 1002-1037. http://dx.doi.org/10.1086/261420
Sander F. and Janovsky J. (2016). Globalization as A Risk Factor for Creativity and Innovativeness. Review of Contemporary Entrepreneurship, Business, and Economic Issues, Vol 29, No 1. https://hrcak.srce.hr/ojs/index.php/ekonomski-vjesnik/article/view/3723
Schumpeter, J. A. (1943). Capitalism, Socialism, and Democracy. New York: Harper. https://doi.org/10.2307/1948935
Sutton, J. (2007). Quality, Trade and the Moving Window: The Globalization Process, manuscript. https://doi.org/10.1111/j.1468-0297.2007.02119.x
Wolf, M. (2003). Is Globalization in Danger? The World Economy, Vol. 26, pp. 393-411, April 2003. https://doi.org/10.1111/1467-9701.00529
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2024 Ba Hoang Nguyen, Ho Hoang Gia Bao, Hoang Phong Le, Tram B.T. Tran, Thanh An Vu
This work is licensed under a Creative Commons Attribution 4.0 International License.