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World DevelopmentVolume 41, Issue 1, January 2013, Pages 302-316

Innovation Performance and Embeddedness in Networks: Evidence from the Ethiopian Footwear Cluster(Article)(Open Access)

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  • aUnited Nations University (UNU-MERIT), Maastricht, Netherlands
  • bMaastricht University, Maastricht, Netherlands
  • cUnited Nations University (UNU-MERIT), Maastricht, Netherlands

Abstract

This study focuses on innovation in a cluster of informal shoemaking firms in Ethiopia-namely the Mercato footwear cluster. It examines how differently those firms are embedded in networks and how heterogeneous they are in absorptive capacity, and how this heterogeneity affects their innovation performance. Business networks are the major channels through which knowledge flows into the cluster. The study reveals that despite geographical proximity and homogeneity in social background the firms in the cluster behave and perform differently. Based on econometric analysis we document a positive and strong effect of local network position and absorptive capacity on innovation performance. © 2012 Elsevier Ltd.

Author keywords

AfricaEthiopiaIndustrial clustersInformal sectorInnovation performanceNetworks

Indexed keywords

GEOBASE Subject Index:econometricsfootwear industryindustrial performanceinformal sectorinnovation
Regional Index:AfricaEthiopia
  • ISSN: 0305750X
  • Source Type: Journal
  • Original language: English
  • DOI: 10.1016/j.worlddev.2012.05.029
  • Document Type: Article

  Gebreeyesus, M.; United Nations University (UNU-MERIT), Netherlands
© Copyright 2012 Elsevier B.V., All rights reserved.

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