Determinants of Innovation: an empirical analysis for Vietnamese manufacturing firms

Economic Annals-ХХI: Volume 155, Issue 11-12, Pages: 87-90

Citation information:
Tuan, N. P. (2015). Determinants of Innovation: an empirical analysis for Vietnamese manufacturing firms. Economic Annals-XXI, 155(11-12), 87-90.

Nham Phong Tuan
PhD (Economics),
University of Economics and Business,
Vietnam National University
Room No 307, E4 Building, 144 Xuan Thuy Road, Cau Giay District, Hanoi, Vietnam

Determinants of innovation: an empirical analysis for Vietnamese manufacturing firms

Abstract. Innovation, including products, processes, marketing and organisational innovation within a firm, is considered as one of essential components for survival and growth of firms. These innovation activities create values and competitive advantages for successful organisations; therefore, understanding the organisation’s overall innovation is the first and foremost to understand the role of innovation on firm performance. The objective of this research is to estimate seven determinants of innovation activities. The questionnaire survey was administered to 118 firms in supporting industries located in Hanoi, Vietnam. The result has demonstrated that there are positive relationships between: 1) communication channels; 2) decentralised structure; 3) organisational resources; 4) belief that innovation is important; 5) willingness to take risks; 6) willingness to exchange ideas; 7) environment and innovation activities. Finally, recommendations have been provided to help academics to understand more about determinants of innovation and firms in supporting industries to improve innovation activities within organizations.

Keywords: Innovation Activities; Innovation Determinants; Manufacturing Firm; Supporting Industry; Vietnam

JEL Classification: M10

Acknowledgements. The author would like to acknowledge financial support for the study from a research grant (2014-2016) with a code QG.14.42 by Vietnam National University, Hanoi.


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Received 6.11.2015