{"title":"Distance to the Frontier and Innovation: The Role of Local Business Environment","authors":"P. Trang, Vu Hoang Nam","doi":"10.22452/mjes.vol57no1.2","DOIUrl":null,"url":null,"abstract":"This study uses panel data from biennially surveys of small and medium-sized enterprises during the period of 2005-2015 in the transition economy of Vietnam, and data on the quality of local business environment (measured by the provincial competitiveness index). This study uncovers that the effects of distance to the frontier (measured by the ratio of productivity of an enterprise to that of the industry leader) on innovation are negatively moderated by improved local business environment. Such an important role of the local business environment indicates that laggard enterprises, which form the majority in transition economies, are favourably supported to achieve innovation when quality of the local business environment is improved.","PeriodicalId":42743,"journal":{"name":"Malaysian Journal of Economic Studies","volume":null,"pages":null},"PeriodicalIF":0.5000,"publicationDate":"2020-06-14","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"1","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"Malaysian Journal of Economic Studies","FirstCategoryId":"1085","ListUrlMain":"https://doi.org/10.22452/mjes.vol57no1.2","RegionNum":0,"RegionCategory":null,"ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q4","JCRName":"ECONOMICS","Score":null,"Total":0}
引用次数: 1
Abstract
This study uses panel data from biennially surveys of small and medium-sized enterprises during the period of 2005-2015 in the transition economy of Vietnam, and data on the quality of local business environment (measured by the provincial competitiveness index). This study uncovers that the effects of distance to the frontier (measured by the ratio of productivity of an enterprise to that of the industry leader) on innovation are negatively moderated by improved local business environment. Such an important role of the local business environment indicates that laggard enterprises, which form the majority in transition economies, are favourably supported to achieve innovation when quality of the local business environment is improved.
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The primary purpose of the journal is to promote publications of original research related to the Malaysian economy. It is also designed to serve as an outlet for studies on the South-east Asian countries and the Asian region. The journal also considers high-quality works related to other regions that provide relevant policy lessons to Malaysia. The journal is receptive to papers in all areas of economics. We encourage specifically contributions on all range of economic topics of an applied or policy nature. At the same time, submissions of methodological or theoretical studies with results that are of practical use are welcome. Works that are interdisciplinary will be considered provided that they contain substantial economic contents.
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