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Since the pioneering work of Joseph Schumpeter (1942), it has been assumed that innovations typically play a key role in firms’ competitiveness. This assumption has been applied to firms in both developed and developing countries. However, the innovative capacities and business environments of firms in developing countries are fundamentally different from those in developed countries. It stands to reason that innovation and competitiveness models based on developed countries may not apply to developing countries.

In this volume, Vivienne Wang and Elias G. Carayannis apply both theoretical approaches and empirical analysis to explore the dynamics of innovation in developing countries, with a particular emphasis on R&D in manufacturing firms. In so doing, they present an alternative to Michael Porter’s Competitive Advantage Model—a Competitive Position Model that focuses on incremental and adaptive innovations that are more appropriate than radical innovations for developing countries. Their research addresses such questions as:

Do innovations advance the competitive positions of manufacturing firms in developing countries? Does the pace of innovation matter, in particular, in socio-economic and socio-political contexts?To what degree can national innovation systems and policies influence development?To what extent do a firm’s innovation commitments correlate with the protection of intellectual property rights?What roles do foreign direct investment and relationships with clusters and networks play?

The resulting analysis not only challenges traditional theoretical approaches to innovation, but provides suggestions for improving business practice and policymaking.

Inhaltsverzeichnis

Frontmatter

Chapter 1. Introduction

Abstract
Existing models of competitiveness that are mainly based on experiences of ­developed countries tend to focus on radical innovations (e.g., Porter 1990). Most previous research assumes that firms in developing countries can follow the same technological paths to achieve competitive advantage. The assumption, thus, became the key point of debate between Justin Lin, the Chief Economist and Senior Vice President of The World Bank, and Ha-Joon Chang, Faculty of Economics, University of Cambridge (Lin and Chang 2009).
Vivienne Wang, Elias G. Carayannis

Chapter 2. Theoritical and Empirical Literature Review

Abstract
The role of conventional innovation in achieving competitive advantage has been examined from the views of comparative and competitive advantage model, resource-based perspective, product life cycle, and internalization theories, such as transaction cost in developed countries (Chudnovsky et al. 2006). However, the ­relevance of incremental and adaptive innovation in escalating competitive position of a firm in a developing country has not been adequately studied (Chudnovsky et al. 2006). To develop the research framework, this study draws mainly from two interrelated fields: innovation model and comparative and competitive advantage model. It also derives relevant aspects from technological cycle, resource-based perspective, path-dependency theory, and sectoral innovation system.
Vivienne Wang, Elias G. Carayannis

Chapter 3. Hypotheses, Models, Data, and Methodology

Abstract
In the introductory section, this research highlighted the concept of competitive position, innovation, and national innovation system – IPR protection in developing countries. To examine how incremental and adaptive innovations advance a firm’s competitive positions in a developing country, this research attempts to investigate the discernible patterns and the interrelationships of a firm’s characters and its business environment factors.
Vivienne Wang, Elias G. Carayannis

Chapter 4. Results

Abstract
The findings from the empirical analysis are presented in this section, which ­follow the same order as of the research questions that are raised in the above chapter.
Vivienne Wang, Elias G. Carayannis

Chapter 5. Conclusion and Implications

Abstract
Firms in developing countries are making greater efforts to harness science and technology in their pursuit of competitive advantages. Expanding international flows of information and highly educated people suggests an emerging trend of global science and technology-based enterprises. This global context has been increasingly facilitating firms in development countries to advance their competitive positions. It, thus, requires new approaches to international cooperation and competition. More and more developing countries are aware of the role of science and technology in sustaining their economic development. It is critical to develop necessary domestic capabilities in niche markets where they can be competitive.
Vivienne Wang, Elias G. Carayannis

Backmatter

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