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Globalization and Innovation in East Asia

Innovation and Technology, SMEs

Globalization and Innovation in East Asia


How is globalization related to innovation? Is globalization a cause of innovation, or is innovation a cause of globalization, or both? Does increased trade and investment liberalization lead to more innovation, or does it depress innovation activity? In either case, what are the exact mechanisms? These are some of the most important questions that this report aims to address. These are some of questions that this report attempts to answer. This report collects many interesting findings based on the papers/studies done to cover many countries in East Asia region. Along with its wide international coverage, this project utilizes micro-level data at plant, firm, or product level. While innovation may be an old topic, there have not many studies in the literature that utilize data at this micro level, addressing the innovation linkage to globalization, and focusing on the most rapidly growing region in the world. There are, therefore, rich insights that one can draw from all papers in this report.

List of Project Members

DR.SHUJIRO URATA (PROJECT SUPERVISOR): Professor, Graduate School of Asia-Pacific Studies,Waseda University, Japan; Senior Researcher Advisor to the Executive Director, Economic Research Institute for ASEAN and East Asia (ERIA), Indonesia.

DR. CHIN HEE HAHN (PROJECT LEADER): Associate Professor, Kyungwon University, Korea.

DR. DIONISIUS NARJOKO (PROJECT COORDINATOR): CResearcher, Economic Research Institute forASEAN and East Asia (ERIA), Indonesia.

DR. SADAO NAGAOKA: Professor, Institute of Innovation Research of Hitotsubashi University, Japan.

DR. NAOTOSHI TSUKADA: Research Associate, Institute of Innovation Research of Hitotsubashi University, Japan.

DR. YONG-SEOK CHOI: Associate Professor, Kyung Hee University, School of Economics, Korea.

DR. KI-WAN KIM: Associate Research Fellow, Korea Development Institute, Korea.

DR. CHANG-GYUN PARK: Associate Professor, Chung-Ang University, Korea.

DR. CASSEY LEE HONG KIM: Senior Lecturer, School of Economics, University of Wollongong, Australia.

DR. RAFAELITA ALDABA: Senior Research Fellow, Philippine Institute for Development Studies (PIDS), Philippines.

DR. ARCHANUN KOHPAIBOON: Assistant Professor, Faculty of Economics, Thammasat University,Thailand.

DR. JUTHATHIP JONGWANICH: Assistant Professor, School of Management, Asian Institute ofTechnology, Thailand.

DR. JACQUES MAIRESSE: Professorial Fellow, UNU-MERIT, Netherlands; INSEE-CREST, France;National Bureau of Economic Research, USA.

DR. PIERRE MOHNEN: Professor, UNU-MERIT; Masstricht University, Netherlands.

DR. NYANYUN ZHAO: Professor and Dean, School of Statistics, Renmin University of China, China.

DR. FENG ZHEN: Postdoctoral Researcher, Bank of China; Chinese Academic of Social Science, China.

DR. NGUYEN NGOC ANH: Chief Economist, Development and Policies Research Center, Vietnam.

DR. NGUYEN THI PHUONG MAI: Senior Fellow, Development and Policies Research Center; NationalInstitute for Science and Technology Policy and Strategy, Vietnam.

DR. NGUYEN DUC NHAT: Executiver Director, Development and Policies Research Center, Vietnam.

DR. NGUYEN DINH CHUC: Central Insitute of Economic Management, Vietnam.

DR. ALFONS PALANGKARAYA: Senior Research Fellow, Melbourne Institute of Applied Economic andSocial Research and the Intellectual Property Research Institute of Melbourne, Australia.

DR. ARI KUNCORO: Professor of Economics, University of Indonesia, Indonesia.

DR. KEIKO ITO: Associate Professor, School of Economics, Senshu University.

Full Report



Front cover

Table of Contents

List of Project Members


Executive Summary

CHAPTER 1: Globalization and Innovation in East Asia

CHAPTER 2: Sources of Learning-by-Exporting Effects: Does Exporting Promote Innovation?

CHAPTER 3: Direction of Causality in Innovation-Exporting Linkage: Evidence on Korean Manufacturing

CHAPTER 4: The Link between Innovation and Export: Evidence from Australia's Small and Medium Enterprises

CHAPTER 5: Multinational Enterprises, Exporting and R&D Activities in Thailand

CHAPTER 6: Globalization and Innovation in Indonesia: Evidence from Micro-Data on Medium and Large Manufacturing Establishments

CHAPTER 7: Globalization, Innovation and Productivity in Manufacturing Firms: A Study of Four Sectors of China

CHAPTER 8: Trade Reforms, Competition, and Innovation in the Philippines

CHAPTER 9: Trade Liberalization and Innovation Linkages Micro-evidence from Vietnam SME Surveys

CHAPTER 10: What Explains Firms' Innovativeness in Korean Manufacturing? Global Activity and Knowledge Sources

CHAPTER 11: Knowledge Flows, Organization and Innovation: Firm-Level Evidence from Malaysia

CHAPTER 12: International R&D Collaborations in Asia: A First Look at Their Characteristics based on Patent Bibliographic Data


Chin Hee Hahn, Dionisius A. Narjoko, Keiko Ito, Chang Gyun Park, Alfons Palangkaraya, Archanun Kohpaiboon, Juthathip Jongwanich, Ari Kuncoro, Feng Zhen, Yanyun Zhao, Pierre Mohnen, Jacques Mairesse, Rafaelita M. Aldaba, Ngoc Anh Nguyen, Thi Phuong Mai Nguyen, Duc Nhat Nguyen, Dinh Chuc Nguyen, Yong Seok Choi, Ki Wan Kim, Cassey Lee, Naotoshi Tsukada, Sadao Nagaoka


Chin Hee Hanh, Dionisius A. Narjoko

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