Is foreign technology acquisition to complement or substitute for internal technology development? A case of manufacturing enterprises in Vietnam
Journal of Science and Technology Policy Management
ISSN: 2053-4620
Article publication date: 26 May 2021
Issue publication date: 29 November 2022
Abstract
Purpose
This paper aims to examine whether foreign technology acquisition is complementary to internal technology development in the context of a developing country.
Design/methodology/approach
The selection model developed by Heckman (1979) was applied with the balanced panel data of manufacturing enterprises from the Annual Enterprise and Technology Surveys from 2012 to 2016 conducted by the Vietnamese General Statistics Organization.
Findings
The results indicate that foreign technology acquisition and internal technology development are complementary innovation options. Particularly, the number of patents granted for manufacturing enterprises positively affects the probability that enterprises acquire foreign technologies. This effect is stronger in cases of high-tech industries than in cases of low-tech industries.
Research limitations/implications
Regarding the relationship between internal technology development and foreign technology acquisition, the findings suggest that adoption of foreign technology acquisition and priority in budget allocation for foreign technology acquisition are different in nature and that budget allocation is a more complex issue and may depend on other factors.
Practical implications
For developing countries, governments should adopt policies supporting domestic enterprises in acquiring technologies from advanced countries that could complement the locally developed technologies. These supports should focus on the high-tech or high-innovation rate industries.
Originality/value
In the context of a developing economy, the complementary effect of internal technology development and foreign technology acquisition is stronger in cases of the high-tech industries than in cases of the low-tech industries.
Keywords
Citation
Nguyen, N.M., Dang, H.T., Nguyen, M.K. and PHung, M.L.M. (2022), "Is foreign technology acquisition to complement or substitute for internal technology development? A case of manufacturing enterprises in Vietnam", Journal of Science and Technology Policy Management, Vol. 13 No. 4, pp. 849-868. https://doi.org/10.1108/JSTPM-01-2020-0006
Publisher
:Emerald Publishing Limited
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