Template-type: ReDIF-Paper 1.0
Author-Name: Hou, Jun
Author-Email: hou@merit.unu.edu
Author-Workplace-Name: UNU-MERIT/MGSoG
Author-Name: Mohnen, Pierre
Author-Email: mohnen@merit.unu.edu
Author-Workplace-Name: UNU-MERIT/MGSoG, and Maastricht University
Title: Complementarity between internal knowledge creation and external
	 knowledge sourcing in developing countries 
Abstract: In developing countries, innovation is to a large extent a matter of
	 adoption of advanced technologies but also of conducting internal R&D to
	 be able to better assimilate existing technologies. This paper, based on
	 firm level data from 24 developing countries, examines the roles of
	 internal R&D efforts (MAKE) and external technology sourcing (BUY) in
	 fostering productivity in manufacturing firms. Is MAKE a substitute for
	 BUY or are the two strategies complementary as evidenced in some
	 developed countries? Our empirical investigation highlights the critical
	 role of external technology acquisition in manufacturing industries in
	 low-income countries and exhibits signs of complementarity only in
	 middle-income countries.        
Classification-JEL: O13, O33, D22
Keywords: innovation, make and buy, complementarity, developing countries 
Series: UNU-MERIT Working Papers
Creation-Date: 2013
Number: 2013-010
File-URL: https://unu-merit.nl/publications/wppdf/2013/wp2013-010.pdf
File-Format: application/pdf
File-Size: 275 Kb
Handle: RePEc:unm:unumer:2013010