Innovative firms in emerging market countries

The rise of innovative firms in emerging market economies is an increasingly topical issue. However, the literature has lagged behind in helping us understand this phenomenon. Aiming to shed more light on the processes through which innovative firms in emerging markets have developed, this book analyzes a variety of firm level experiences. These are drawn from a range of key countries, sectors, and institutional contexts. The book finds that the rise of innovative firms in emerging market countries has been influenced by shifts in the institutional, technological, and policy environment - in particular, by the opening up of emerging market economies over the past three decades, and the consequent increase in international business interactions. Across the different countries surveyed, we find that firm-level innovation has been strongly influenced by capabilities that had previously been built up in a relatively closed environment. However, in the current more open environment, we find that innovation among firms also reflects differences in these national historical contexts, as well as in the different forms of interaction with international business that have subsequently emerged. Across all countries, however, it is found that the type of firm that will prove a successful innovator varies according to its goodness of fit with its surrounding environment. Two key facets of this environment are found to be the nature of the industrial and technology policy regime and the scope of international business connections.