Detecting Effective Knowledge Sources in Product Innovation: Evidence from Local Firms and MNCs/JVs in Southeast Asia

Abstract

This paper examines the effects of internal and external sources of knowledge on the introduction of new products based on new technologies or information at firms which responded to a questionnaire survey conducted in four Southeast Asian countries. The results confirm that local firms make full use of locally available sources of new technology or information to achieve product innovation. On the other hand, foreign-owned firms depend mainly on internal R&D capacities and also possibly upon cooperation with local universities. These findings highlight the fact that local firms complement their lack of internal resources for product innovation with external knowledge sources. Foreign-owned firms utilize their international production networks to concentrate their resources on innovative activities.