Empirical Analysis of Information Linkages and Capability in ASEAN Economies: Case of Indonesia, the Philippines, Thailand and Vietnam

Abstract

This paper refers to the channel by which a donor transfers technology to a recipient as “Linkage,” which connects MNCs or large firms with local firms. This paper attempts to identify (i) effective information linkages and (ii) the capability or potentiality of respondents for innovation, which is termed “Innovation Capability.” The linkages themselves are not necessary conditions for achieving innovation and upgrading, since information convoyed through them is useless if the recipients do not possess the capability or potentiality to convert it to applications or innovations. We conducted comprehensive surveys in four ASEAN economies (Indonesia, the Philippines, Thailand andVietnam), and received approximately 700 responses. The surveys contained questions on information linkages required for innovation and on the sources of information such as university, public agencies, industry/trade organizations, and public R&D institutions as well as MNCs. As a result, MNCs were identified as important sourceswhich transmit information through not only production but also human linkages. With regard to necessary capability for connecting linkages, we identified ODM, OBM and patent rights for the MNCs linkages, and patent right for the public institutions. Lastly, this paper calculates probability of particular capability for firms to connect with MNCs and public institutions, and these are patent rights, top management who have experience working in MNCs, engineers with the level of college graduates, and granted licensing technology for the MNC linkage