The relationship between small and medium sized enterprises’ characteristics and their innovative capacity evidences from firms in quang ninh province

INTRODUCTION

Context

The World Bank's "Vietnam 2035" report emphasizes that strengthening the private sector's capacity for innovation is crucial for Vietnam's transition to an innovation-led economy It argues that science and technology advancements must be driven by demand; otherwise, they risk becoming expensive and ineffective To enhance businesses' innovative capabilities, the government should create an environment that supports the development and absorption of innovative practices.

Vietnamese small and medium-sized enterprises (SMEs) are underperforming in innovation compared to expectations based on the country's GDP per capita, despite constituting about 96% of firms and employing 47% of the workforce A World Bank Enterprise Survey from 2014 to 2016 revealed that while 53% of Vietnamese SMEs engaged in some form of innovation, most lacked R&D support and made minimal investments, with a median of only 100 million VND Their innovation efforts tend to be "frugal," focusing on minor product adjustments rather than developing entirely new offerings This limited capacity for fundamental innovation is largely due to inadequate resources However, successful economies like Taiwan, Germany, and Singapore demonstrate that SMEs can drive national innovation and economic growth, as evidenced by the post-World War II boom in high-tech sectors in the U.S.

1 There were also some selected countries including China, Indonesia, Thailand, Malaysia, Turkey for comparison

II period can also be attributed to SMEs, and many of which have become global brands such as Google, Microsoft, Intel (Nguyen, et al., 2020)

In recent years, the Vietnamese government has implemented various policy incentives to boost national innovation, with a particular focus on small and medium-sized enterprises (SMEs) and startups The landmark law supporting businesses, enacted by Congress in 2017, primarily targets SMEs and emphasizes the importance of startups SMEs that engage in high-tech applications and development can access several incentives, predominantly in the form of preferential tax rates Additionally, specific national initiatives, such as Project 844, have been launched to directly support startups in the country.

Since 2013, initiatives like Vietnam Silicon Valley and Project 844 by the Ministry of Science and Technology have aimed to foster connections between innovators and investors, tackling financial barriers faced by startups in Vietnam These efforts, which include collaboration with numerous provincial governments, represent a significant government commitment to nurturing the innovative startup ecosystem in the country through 2025.

Quang Ninh province has emerged as a leading example in Vietnam for enhancing the local business environment, consistently ranking high in key indexes such as the Provincial Competitiveness Index (PCI), Provincial Governance and Public Administration Performance Index (PAPI), and Public Administration Reform Index (PAR INDEX) for four consecutive years The province boasts a robust economy, with a Gross Regional Domestic Product (GRDP) growth rate exceeding 10% annually from 2016 to 2020, and a GDP per capita of $6,135 in 2019, approximately three times the national average As one of the major economic hubs in Northern Vietnam, Quang Ninh is poised to play an increasingly significant role in the region's future economic landscape.

2 However, so far, there is no separate formal legal documents to support startup businesses since they are generally treated as a category of SMEs

3 Despite severe impacts of the COVID-19 pandemic, in 2020, the growth rate was 10.05%

In 2019, the provincial government of Quang Ninh continued its commitment to improving the business environment by conducting the DDCI (District and Department Competitiveness Index) survey, aimed at assessing the performance of local authorities in fostering a favorable climate for businesses This survey utilized the IVC (Innovation Value Chain) framework, highlighting the local government's recognition of innovation as crucial for economic development Quang Ninh stands out as the only province in Vietnam to implement the IVC framework for evaluating firms' innovation capacity, although previous analyses were limited to district-level comparisons This research leverages existing data to explore factors influencing firms' innovative capacity, providing valuable insights that may guide policymakers in enhancing their support strategies.

Boosting innovative capacity among local businesses is essential for achieving sustainable economic growth in Quang Ninh province With significant potential, the local government can actively promote this trend Currently, the economy heavily depends on capital and labor expansion, resulting in limited total factor productivity To transform its growth model, the local government must foster and support innovation within the business sector.

This research examines how specific characteristics of small and medium-sized enterprises (SMEs) impact their innovative capacity through a comprehensive innovation value chain (IVC) process It aims to offer insights into the ways in which these characteristics influence the innovation potential of SMEs.

Objectives

This study investigates the link between specific characteristics of SMEs in Quang Ninh province and their innovative capacity, utilizing the Innovation Value Chain (IVC) framework We focus on evaluating firms' innovative capacity through the innovation process rather than solely on the outcomes of their activities.

The Innovation Value Chain framework offers a conceptual tool for evaluating the innovative capacity of firms By analyzing its findings, policymakers can gain insights into the factors that influence the innovation potential of SMEs, enabling them to develop targeted solutions that enhance the effectiveness of their support policies.

To achieve this, the research seeks to answer the question: What are the characteristics that influence SMEs innovative capacity based on the IVC framework?

This study reviews key findings in the innovation literature related to the Innovation Value Chain (IVC) and small and medium-sized enterprises (SMEs) It analyzes data to identify factors influencing the innovative capacity of firms in Quang Ninh and examines the impacts of these factors at each stage of the IVC Additionally, the study discusses the policy implications derived from the findings to enhance the innovative capacity of SMEs in the province.

To address the research questions, we utilize simple logit models to examine each phase of the Innovation Value Chain (IVC) Our findings aim to reveal the correlation between various characteristics of small and medium-sized enterprises (SMEs) and their innovative capacity, specifically focusing on their likelihood of exhibiting strong or weak performance in three key areas: (1) the ability to source new ideas from diverse channels, (2) the capability to transform these ideas into valuable products, services, or processes, and (3) the ability to effectively distribute and protect the innovative outcomes.

We conducted an OLS regression analysis to examine how various characteristics influence the overall innovation capacity (IVC) of SMEs The findings may reveal a linear relationship between innovation capacity and each of the explanatory variables.

The lack of available data hinders our ability to analyze the innovative capacity of SMEs in various provinces of Vietnam Currently, Quang Ninh is the sole province that has implemented IVC framework-based questions in its DDCI survey Additionally, the Quang Ninh DDCI survey is updated annually to align with policy priorities, which means that at the start of our research, we only have access to data from this specific DDCI survey.

2019 Therefore, we limit the scope of this research in Quang Ninh province

This article analyzes data from two key sources: the DDCI Quang Ninh 2019 survey and the 2019 Enterprise Survey conducted by Vietnam's General Statistics Office (GSO), utilizing firms' Tax IDs Both surveys offer insights into annual revenue and investment for the year 2018; however, the DDCI Quang Ninh survey also includes additional data collected in July 2019 Consequently, the data's timescale spans from 2018 to July 2019.

Innovation, as defined by Schumpeter, involves "new combinations" of knowledge, resources, and equipment aimed at commercialization Unlike invention, which can occur without a commercial intent, innovation is specifically focused on generating economic value within the market.

Another important definition of innovation comes from the works of Peter Drucker in the 1980s (Drucker, 2014) His definition clarifies three aspects of innovation:

Innovation involves identifying new business opportunities through advancements in technologies, products, services, processes, and business models It is not a spontaneous occurrence; rather, it is a structured and systematic process that necessitates discipline, which can be cultivated through learning and practice Furthermore, successful innovation relies on active learning and the effective application of acquired knowledge.

Innovation is a process that begins with an idea, evolves through the development of an invention, and culminates in the enhancement of products, services, processes, or technological advancements, reflecting organizational innovativeness (Hisrich & Kearney, 2013).

Innovation is a crucial business activity that involves discovering novel ideas and transforming them into new technologies, processes, products, services, or business models It requires organizational capabilities, dedicated efforts, and various resources, as innovation does not occur in isolation.

An innovation event, for example, the introduction of a new product is just an end of a series from generating novel ideas to making them a reality; and more

LITERATURE REVIEW

Innovation

Innovation, as defined by Schumpeter, refers to the "new combinations" of knowledge, resources, and equipment aimed at commercialization Unlike invention, which can occur without a commercial intent, innovation is specifically focused on economic application and profitability.

Another important definition of innovation comes from the works of Peter Drucker in the 1980s (Drucker, 2014) His definition clarifies three aspects of innovation:

Innovation involves creating new business opportunities through advancements in technology, products, services, processes, and business models It is not a spontaneous occurrence but rather a structured and systematic process that demands discipline, which can be cultivated through learning and practice Additionally, engaging in active learning and effectively utilizing acquired knowledge is essential for achieving successful innovation.

Innovation is a process that begins with an idea and advances through the development of an invention, ultimately leading to the enhancement of products, services, processes, or technological advancements within an organization This definition highlights the role of organizational innovativeness in driving progress and change (Hisrich & Kearney, 2013).

Innovation is the process of identifying and developing novel ideas into new technologies, processes, commercial products, services, or business models It requires organizational capabilities, dedicated efforts, and adequate resources to be successful.

Innovation Value Chain

An innovation event, for example, the introduction of a new product is just an end of a series from generating novel ideas to making them a reality; and more

7 importantly, to protect and exploit the results The “Innovation Value Chain” framework describes this whole process

The IVC framework, developed by Hansen and Birkinsaw in 2007, emerged from extensive research on innovation conducted over a decade across multiple countries It comprises three sequential stages: Idea Generation, Idea Conversion, and Diffusion of Developed Concepts This framework outlines a comprehensive process where firms collect or create knowledge, transform it into specific market offerings, and ultimately aim to capitalize on these products or processes in the market (Roper & Arvanitis, 2012).

Hansen and Birkinsaw (2007) found that each firm had its own particular

In the innovation value chain (IVC), firms often face unique challenges, such as one being adept at sourcing knowledge but struggling to translate it into profitable products This highlights the importance of executives understanding their firm's specific IVC to identify and address their weakest links effectively Instead of imitating best practices from other firms, a tailored, end-to-end approach to generating, converting, and diffusing ideas is essential (Hansen & Birkinshaw, 2007) Policymakers should also investigate the factors contributing to these weakest links to develop targeted solutions that enhance the innovation process.

Figure 2.1 The Innovation Value Chain framework

The IVC framework breaks down innovation into a comprehensive process with distinct connections, highlighting the reliance of innovation on various organizational capacities: Idea Generation, Conversion, and Diffusion.

The IVC framework highlights that innovation begins with strong ideas, which managers can access through three key channels Primarily, they discover ideas within their own business units or functional groups However, the most innovative concepts often emerge from external sources, where diverse perspectives converge This external inspiration can be harnessed through collaboration across different internal units and by engaging with external stakeholders, such as customers and clients.

Generating innovative ideas is important, but the way a company manages these ideas is crucial In many organizations, overly rigid funding criteria, traditional mindsets, and limited budgets can stifle even the most creative concepts.

Some organizations may struggle with an influx of new projects that lack alignment with their strategic goals, leading to confusion and inefficiency To succeed, it is essential to transform innovative ideas into tangible products, processes, or services that drive measurable returns.

9 additional revenue for the firm It takes a long or short time, depending on the firm’s capacities and resources

For successful market diffusion of new products, processes, or services, it is essential to secure support not only from customers but also from various internal units within the organization This collaboration ensures effective distribution across market channels for products and services, and facilitates the implementation of best practices and business models throughout the company.

The IVC framework has been utilized in various studies to investigate the "black box" that enables diverse firms to thrive in innovation (Roper, Du, & Love, 2008; Roper & Arvanitis, 2012; Ganotakis & Love, 2012; Chen, Liu, & Zhu, 2018).

Roper, Du, and Love (2008) identified a causal relationship linking knowledge sourcing, innovation, and business growth within firms in Northern Ireland and Ireland, highlighting the importance of a firm’s innovative value chain (IVC), characteristics, and market environment in enhancing performance Similarly, Roper and Arvanitis (2012) analyzed panel data from firms in Switzerland and Ireland, revealing complementary connections between internal and external knowledge sourcing However, they noted inter-country variations in the factors influencing innovation and its impact on productivity, emphasizing that the business environment significantly affects firms’ innovation outcomes.

Recent studies have utilized the Innovation Value Chain (IVC) framework to examine regional disparities in innovation performance (Chen, Liu, & Zhu, 2018) and the performance of firms within specific industries (Ganotakis & Love, 2012) Research conducted by Chen, Liu, and Zhu (2018) on high-tech firms across various regions in China revealed significant differences in innovative capacities among these regions Additionally, Ganotakis and Love (2012) demonstrated that the IVC approach is effective in identifying the influence of different factors at each stage of the innovation process.

In their 2020 study, Dinh, Cao, and Dang utilized the IVC framework as part of their Innovative Capacities Index to evaluate the innovative capabilities of SMEs in Vietnam They conducted a review of various measurement methods for assessing firms' innovative capacities and integrated these approaches to create a comprehensive set of indexes tailored for Vietnamese SMEs The indexes were tested across three key industrial sectors: food processing, textile, and electronics This research marks a pioneering effort to establish a systematic framework for measuring the innovative capacities of firms in Vietnam.

In this research, we have modified the original IVC framework proposed by Hansen and Birkinshaw (2007) to better align with the characteristics of Vietnamese SMEs While the DDCI survey questions on innovation capacity largely reflect this framework, they do not include "the ability to diffuse innovative results across the firm," which is crucial for large international brands However, since our focus is on assessing the innovative capacity of SMEs, this aspect has been intentionally excluded Notably, in Quang Ninh province, the majority of enterprises are SMEs, and their operations are primarily limited to Vietnam, making this adjustment essential for accurately capturing the innovation dynamics within this context.

The dependent variables—Idea, Development, and Diffusion—are composite variables that correspond to each phase of the Innovation Value Chain (IVC) These binary variables take on two possible values: 0 indicates a weak link, while 1 signifies a strong link The assigned values depend on responses to specific questions evaluating each link within the firm's IVC; a response of "Absolutely agree" or "Agree" results in a value of 0, whereas any other response yields a value of 1 Table 1 illustrates the composition of each variable across the different phases.

Table 3.1.The set of questions evaluating the IVC links in the DDCI Quang Ninh

2019 survey (Original Vietnamese - English translation)

Phases Links The respondents Agree/Disagree with the below statements

In-house 1 Văn hóa của chúng tôi khiến cho mọi người khó đưa ra được những ý tưởng đột phá, mới mẻ

Our culture makes it difficult for people to generate new ideas

2 Nhân viên của chúng tôi thường không hào hứng hợp tác với các đơn vị, chi nhánh khác để cùng phối hợp phát triển các dự án đổi mới sáng tạo

Our employees are usually not excited in working with other units or sections to collaborate on building innovative projects.

METHODOLOGY

Dependent variables

The dependent variables—Idea, Development, and Diffusion—represent composite variables aligned with each phase of the Innovation Value Chain (IVC) These binary variables have two values: 0 indicates a weak link, while 1 signifies a strong link The assigned values depend on responses to specific questions assessing each link within the firm's IVC, where responses of "Absolutely agree" or "Agree" result in a value of 0, and all other responses yield a value of 1 For detailed composition of each variable by phase, refer to Table 1.

Table 3.1.The set of questions evaluating the IVC links in the DDCI Quang Ninh

In-house 1 Văn hóa của chúng tôi khiến cho mọi người khó đưa ra được những ý tưởng đột phá, mới mẻ

Our culture makes it difficult for people to generate new ideas

2 Nhân viên của chúng tôi thường không hào hứng hợp tác với các đơn vị, chi nhánh khác để cùng phối hợp phát triển các dự án đổi mới sáng tạo

Our employees are usually not excited in working with other units or sections to collaborate on building innovative projects

External 3 Rất ít ý tưởng tốt về sản phẩm/dịch vụ/hoạt động kinh doanh mới đến từ các nguồn bên ngoài doanh nghiệp

Very few good ideas in terms of products/services/business come from outside the company

Chúng tôi thường có tâm lý e ngại rủi ro khi đầu tư vào các dự án mới, điều này khiến cho những ý tưởng mới khó có thể nhận được sự chấp thuận đầu tư.

We are usually afraid of taking risks in investing in new projects making it difficult to fund new ideas

Execution 5 Đội ngũ quản lý của chúng tôi thường không cảm thấy hứng thú với việc triển khai các hoạt động kinh doanh mới

Our managers are often disinterested in implementing new business activities

6 Chúng tôi thường chậm triển khai các sản phẩm và ý tưởng kinh doanh mới; Nếu được triển khai thì các dự án phát triển sản phẩm mới thường không hoàn thành đúng kế hoạch

We are slow in executing new products and business ideas; If ever been executed, they often fail to meet the schedule

Bảo vệ sự khuếch tán là rất quan trọng, vì các đối thủ cạnh tranh thường nhanh chóng sao chép sản phẩm của chúng tôi và đưa những sản phẩm này vào các thị trường khác trước khi chúng tôi kịp thời phát triển.

Our competitors often quickly copy our products and go ahead of us in distributing them into other markets

Spread 8 Chúng tôi không đưa được các sản phẩm, dịch vụ mới thâm nhập được vào các kênh phân phối hiện đại (siêu thị, thương mại điện tử) và các vùng miền tiềm năng

We are unable to take new products and services into modern distribution channels (supermarkets, online stores) and potential regions

The value of each phase is calculated according to the following formula:

• 𝑌 𝑖 ∈ {0,1} is the value of the phase 𝑖

• 𝑎, 𝑏, 𝑐 ∈ {0,1} are the values of the links of phase 𝑖

The first phase of the process is Idea Generation, which outlines how a company can effectively generate valuable ideas from various sources This phase consists of three key components, each addressing the initial questions presented in the accompanying table.

The initial inquiry examines whether the company’s culture inhibits employees from proposing innovative ideas This assessment is crucial for determining the organization’s ability to cultivate new concepts internally within each department.

Cross-pollination within a business evaluates the collaboration between various units to foster innovative projects This approach emphasizes the importance of integrating diverse company segments to create new products and ventures.

• The final link of the Idea generation (External) assesses whether the firm is sourcing enough good ideas from outside

A firm is evaluated as being weak in the Idea generation phase if it has at least a weak link in the phase

Next, the second phase is Conversion In the IVC framework, this phase consists of two components, namely Selection and Execution

Radical ideas often face funding challenges due to a risk-averse attitude, which can ultimately stifle innovative concepts This raises an important question regarding Selection: does a risk-averse mindset obstruct the financial support needed for new ideas within the firm?

The Execution link follows the Selection phase, where we evaluate two key aspects: the enthusiasm of managers for initiating new business activities and the timeframe required to implement projects This link is considered weak if either of these components is lacking.

Finally, the third phase is Diffusion It assesses a firm’s ability to diffuse the products that have been converted from the new ideas; and it is composed of two links:

• If the firm’s competitors in the market easily copy its innovative results and go ahead to commercialize them in other markets, then Protection link is a weak link

• And similarly, if the firm is unable to introduce the products to the into modern channels and potential markets, the Spread link is a weak link

To analyze the impact of firm characteristics on the Innovation Value Chain (IVC), we developed a continuous variable called the "IVC score." This score is calculated by summing all links in the IVC, with equal weight assigned to each phase: Idea, Conversion, and Diffusion, each contributing 0.33 The weight is evenly distributed among the links within each phase, resulting in an IVC score that ranges from 0 to 1 Consequently, the IVC score can be treated as a continuous variable, which will be utilized in the Ordinary Least Squares (OLS) regression analysis.

Explanatory variables for SMEs’ innovation value chain in Quang Ninh

The explanatory variables in this study are derived from the DDCI Quang Ninh 2019 Survey and the Enterprise Survey conducted in 2019 Our analysis includes a total of 12 explanatory variables, comprising 8 binary variables and 4 continuous variables Below, we provide definitions and hypotheses for each variable.

This variable assesses whether a firm has increased its investment in information technology compared to the previous year Enhanced IT investment can significantly improve a firm's performance and facilitate better internal communication However, this variable does not compare a firm's IT investment to that of other firms, as we lack relevant statistics For instance, while Firm A may have a high level of IT intensity, its investment could still be lower than the previous year Conversely, Firm B, with a lower IT intensity, might consistently increase its technology investments, making it impossible to determine if Firm A has invested less than Firm B Nonetheless, incorporating this variable into the model allows us to evaluate the firm's commitment to increasing its IT investment.

4 The weight of Idea generation phase is 0.34 to make the total IVC score exactly equal 1

The relationship between IT and innovation capacity suggests that strong innovators may adjust their IT investments during 2018-2019 However, this observation does not establish a causal link between technology and a firm's ability to innovate.

Investment more than 10 billion VND in 2018 in Quang Ninh

Firms with substantial investments are more likely to secure adequate funding for innovative activities and have better access to skilled human capital and networks compared to smaller firms (Rogers, 2004) With larger investments, these firms can dedicate more resources to enhance performance through innovative projects Consequently, we hypothesize that firms that invested over 10 billion VND in Quang Ninh in 2018 demonstrate significantly stronger capabilities in each phase of the Innovation Value Chain (IVC) than those with smaller investments.

Micro firms, defined as those with fewer than 10 employees, are generally perceived to be less competitive and possess lower investment capabilities compared to larger SMEs Despite this, they often excel in generating innovative ideas and executing small projects due to their flexibility and simpler organizational structure However, the lack of a benchmark for comparing the innovation value creation (IVC) of micro firms with larger firms may lead to an oversight in recognizing their potential contributions.

The survey did not include quantitative or qualitative questions about the outputs of each phase of the IVC, which may blur the distinction between the innovative capacities of micro firms and larger SMEs Consequently, the correlation coefficients between this variable and the dependent variables should be viewed as a basic evaluation of the process, with the exception of the Diffusion phase.

In Vietnam, private firms face significant disadvantages in innovation compared to state-owned and foreign direct investment (FDI) firms, particularly during the Conversion and Diffusion phases, which demand substantial resources that private SMEs often lack.

This research aims to explore the connections between the Integrated Value Chain (IVC) and the primary industries of firms within the province Our literature review reveals no established relationship between the IVC and the industries of these firms Consequently, we hypothesize that service firms will exhibit similar strengths in each phase of the IVC as compared to manufacturing, agricultural, and mining firms.

Research indicates a connection between the educational background of managers and the innovative capacities of small and medium-sized enterprises (SMEs) (Nguyen, 2020; Keizer, Dijkstra, & Halman, 2002; Bougrain & Haudeville, 2002) Managers, as key decision-makers who assume responsibility and risk in innovative projects, significantly influence project selection and execution We hypothesize that there may be notable differences in innovation outcomes between managers with advanced education and those with limited or no formal education Specifically, we anticipate a positive correlation between higher education levels of managers and the innovation capacity of SMEs, particularly during the conversion phase.

Informal Payments to local authorities

Our survey asks: “Did the firm made any informal payment to local authorities over the last year?” Nguyen (2020) found that in Vietnam, bribery significantly lowers

SME’s probability to innovate, while some studies in other countries found the contrast

In this study, we are particularly interested in the context of Quang Ninh, and we predict that bribery hinders the firm’s performance in each phase of the IVC

The survey investigates whether respondents agree with the statement: “The relationship with local authorities helps firms access important information or documents more easily.” If a respondent agrees, it indicates that the firm values its relationship with authorities as beneficial for obtaining essential information.

Cronyism is often seen as harmful to a company's innovation and productivity, as firms might prioritize building relationships with local authorities over investing in innovative practices However, these connections can also provide firms with informal support from the government, enhancing their performance throughout the innovation process by granting access to additional resources and information.

Cronyism plays a significant role in the business environment and innovation, yet it has been largely overlooked by researchers compared to informal payments, such as bribery This study aims to address this research gap and hypothesizes a negative correlation concerning this variable.

Higher revenue indicates greater cash flow for a firm This study aims to examine whether companies with increased revenue from the previous year gain advantages in each stage of the Investment Value Chain (IVC) We hypothesize that this revenue positively influences the overall IVC.

Management capacity is a multifaceted variable that evaluates the overall management practices within firms Derived from DDCI data, it consists of eight questions (refer to Appendix 2) that determine whether a firm has implemented or intends to adopt effective management tools and practices Each criterion is linked to a specific question, contributing to a comprehensive assessment of management capabilities.

Firms can score a maximum of 8 points by having already implemented all 8 criteria, with 1 point awarded for each criterion already practiced If a firm has plans to adopt a criterion, it receives 0.5 points, while no points are given if a criterion is not in place.

Since firm’s management capacities are closely related to innovation (WB, 2020; Roper, Du, and Love, 2008) we hypothesize that: management capacities are positively related to every phase in the IVC

The probit model

The innovative capacity of firm $i$ in each phase of the IVC is influenced by a latent variable $I_i$, which is determined by various explanatory factors, such as the firm's investment amount $X_i$ A higher value of the index $I_i$ increases the likelihood of the firm being classified as strong in that phase.

Where 𝑋 𝑖 is the amount of investment in the 𝑖th firm

The latent variable is related to the actual category of the firm’s innovative capacity in such a way that there exist of critical value called 𝐼 𝑖 ∗ such that if 𝐼 𝑖 exceeds

The innovative capacity of an entity is represented by the index 𝐼 𝑖 ∗, which indicates strong innovation when 𝑌 = 1 and weak innovation when 𝑌 = 0 Although the threshold 𝐼 𝑖 ∗ is not directly observable, we can estimate its parameters by assuming a normal distribution with identical mean and variance.

Based on the assumption of normality, the probability that 𝐼 𝑖 is bigger or equal to

𝐼 𝑖 ∗ can be calculated from the standardized normal cumulative distribution function (CDF) as:

Where 𝑃(𝑌 = 1) means the probability that the event occurs given the values of the explanatory variable and where 𝑍 𝑖 is the standard normal variable (𝑍 𝑖 ~(0, 𝜎 2 ) 𝐹 is the standard normal CDF:

The information on the latent variable 𝐼 𝑖 and parameters 𝛽 0 and 𝛽 1 , we take the inverse of the CDF:

𝐼 𝑖 = 𝐹 −1 (𝐼 𝑖 ) = 𝐹 −1 (𝑃 𝑖 ) = 𝛽 0 + 𝛽 1 𝑋 𝑖 Where 𝐹 −1 is the inverse of the normal CDF

Based on the above theoretical model, our function for each latent variable 𝐼 𝑖 is as below:

Where: IT, INV, LBR, PRI, SERV, EDU, RELA, IPAY are dummy variables, while lnREV,

MAGE, AGE, and DDCI is continuous variables

𝐼 𝑖 : it can be Idea generation, Conversion, or Diffusion, depending on which phase is under consideration

𝐼𝑇 𝑖 : equal 1 if firm 𝑖 invested more in IT compared to the last year;

𝐼𝑁𝑉 𝑖 : equal 1 if firm 𝑖 made an investment of over 10 billion VND in 2018;

𝐿𝐵𝑅 𝑖 : equal 1 if firm 𝑖 is employing more than 10 labors;

𝑃𝑅𝐼 𝑖 : equal 1 if firm 𝑖 is a private firm;

𝑆𝐸𝑅𝑉 𝑖 : equal 1 if firm 𝑖 is a service firm;

𝐸𝐷𝑈 𝑖 : equal 1 if the highest manager of the firm hold higher education degree;

𝑅𝐸𝐿𝐴 𝑖 : equal 1 if firm 𝑖 (the respondent) agrees that relationship with local authority is advantageous to firms in accessing to important documents and information;

𝐼𝑃𝐴𝑌 𝑖 : equal 1 if firm 𝑖 made informal payment to local authorities in 2019;

𝐿𝑛𝑅𝐸𝑉 𝑖 : is the natural logarithm of firm’s revenue in 2019;

𝑀𝐴𝐺𝐸 𝑖 : is the management capacities of firm 𝑖;

𝐴𝐺𝐸 𝑖 : is the number of years since it was registered;

𝐷𝐷𝐶𝐼 𝑖 : is the DDCI score of the district/city where firm 𝑖 is located;

The Data

Our research shifts the focus from merely assessing whether enterprises have launched innovative products or processes in recent years to a comprehensive evaluation of their innovation value chain (IVC) through managerial insights This method allows for a deeper understanding of a firm's innovative capacity across various innovation types By utilizing a structured set of questions based on the IVC framework, managers can pinpoint specific challenges within their firm's innovation stages Additionally, the aggregated data from multiple firms can reveal significant factors affecting IVC, offering valuable insights for policymakers aimed at enhancing the innovative capabilities of local SMEs.

The data for this analysis is derived from the 2019 Enterprise Survey and the DDCI Quang Ninh survey, utilizing Tax ID for accuracy We excluded observations lacking complete information on innovative capacities, specifically those related to questions H.16.1 to H.16.8 from the DDCI survey A comparison of annual revenue responses from both surveys led to the removal of mismatched entries Additionally, firms older than 20 years, cooperatives, those reporting zero or negative annual returns, and enterprises with over 200 employees were also excluded to ensure the sample consists solely of SMEs.

To enhance data credibility, firms providing inconsistent responses to the IVC (H16.1-H16.8) and management capacities (H12.1-H12.8) questions in the DDCI survey were excluded from the sample Specifically, cases showing complete positive answers for IVC while giving full negative responses for management capacities, and vice versa, were filtered out This approach ensures that firms cannot simultaneously exhibit strong management capabilities alongside a weak innovation value chain, or vice versa As a result, at least 20 observations were removed, reinforcing the reliability of the data collected.

The analysis is based on a sample of 724 observations, with 73% primarily from the service sector, while the remainder is distributed among manufacturing, construction, agriculture, and mining Notably, 97% of the firms are privately owned, with only 19 being state-owned, foreign direct investment (FDI), or foreign joint ventures The sample encompasses all 14 districts and cities of the province as of 2019, although it is predominantly concentrated in major urban areas such as Ha Long, Cam Pha, and Mong Cai.

In the DDCI survey, respondents indicated their revenue range for the previous year, such as less than 10 billion VND Conversely, the Enterprise survey required firms to specify their exact revenue for 2018, which we then verified against the corresponding revenue brackets from the DDCI survey.

Figure 3.1 Distribution of the sample

Descriptive statistics

Table 3.2 presents the proportions of firms classified as weak and strong across different phases of the IVC, based on specific characteristics Each cell indicates the percentage of firms within each group that possess a given characteristic For instance, the row labeled "Labor >10" illustrates the proportions of firms employing more than 10 workers in both the weak and strong categories To assess the statistical significance of the proportional differences between these two groups, we applied the Koopman proportion tests (1984).

The analysis reveals significant disparities between weak and strong groups across various stages of the Innovation Value Chain (IVC) Firms that invested over 10 billion VND in 2018 and those employing more than 10 workers are more likely to belong to the strong group at all stages Conversely, companies that engage in informal payments to local authorities tend to be in the weak group Notably, certain dimensions show inconsistent statistical significance across stages; for instance, firms increasing IT investment are predominantly in the strong group during the Idea Generation and Conversion stages Additionally, the presence of higher education degrees among top managers significantly impacts the Conversion stage, while its relevance diminishes in earlier phases Lastly, firms that believe in leveraging connections with local authorities are also more likely to succeed.

The Obs Average IVC scores reveal high levels of important information in both weak and strong groups, with a notable concentration of weak groups during the Idea Generation and Conversion phases In contrast, the Diffusion stage shows only a minor gap between the groups Additionally, private firms tend to exhibit a higher presence of weak groups in the Conversion and Diffusion phases However, due to the limited number of other firm types, the reliability of these statistics is questionable Ultimately, the proportional differences between strong and weak groups among service firms across the IVC stages are minimal.

Table 3.2 Descriptive statistics of the binary variables (%)

Variables Idea generation Conversion Diffusion

Investment >10 bil in 2018 in QN

Variables Idea generation Conversion Diffusion

***, **: One and five percent statistically significant level respectively

Table 4 presents the t-test results for continuous variables, indicating significant differences in annual revenue between the weak and strong groups during the Development and Diffusion stages This suggests that larger firms, typically associated with higher revenues, exhibit greater strength at these phases of the IVC Additionally, management capacities show consistent significance across all stages, with a one-point difference between the groups in each phase Conversely, the differences in firm age and DDCI scores between the strong and weak groups are minimal and statistically insignificant across all stages.

Table 3.3 Descriptive statistics of the continuous variables

***, **: One and five percent statistically significant levels respectively

4.1 Relationship between firms’ characteristics and each phase of the IVC

Table 5 presents the findings from the simple probit model analysis, indicating that increased investment in IT over the past year does not significantly impact the likelihood of firms being categorized as strong or weak within each phase of the IVC Similarly, factors such as the highest level of education of managers, sector classification, annual revenue, firm age, and DDCI scores of districts or cities show no significant relationship with these group classifications.

The variable Management capacities demonstrates a statistically significant positive relationship with all phases of the Innovation Value Chain (IVC) at a 1% level Specifically, a one-unit increase in Management capacities increases the likelihood of a firm excelling in the Idea, Conversion, and Diffusion phases by 5%, 4%, and 3%, respectively.

Investment exceeding 10 billion VND significantly influences the Diffusion phase, with firms in this category being 22% more likely to excel in this stage when other variables are held constant Additionally, such large investments correlate with a 14% higher probability of performing well in the Conversion phase, achieving statistical significance at the 5% level This indicates that firms making substantial investments possess greater advantages in transforming their knowledge into tangible products and effectively marketing and distributing these products compared to smaller firms.

Companies with over 10 employees are significantly more likely to succeed in the final phase of product diffusion, with a 10% marginal effect and a 5% statistical significance This indicates that micro businesses face greater challenges during the diffusion phase, while larger enterprises have a distinct advantage in promoting and establishing their products in the market.

The two variables related to the business environment all show negative impacts on each phase of the IVC, but not all phases are statistically significant Relationship

RESULTS AND FINDINGS

Relationship between firms’ characteristics and each phase of the IVC

Table 5 presents the findings from the simple probit model analysis, indicating that increased IT investment by firms over the past year does not significantly impact their likelihood of being classified in either strong or weak categories within each phase of the IVC This lack of significance also applies to factors such as the highest level of education of managers, sector classification, annual revenue, firm age, and the DDCI scores of the districts or cities.

The variable Management capacities demonstrates a positive correlation with each phase of the Innovation Value Chain (IVC), all statistically significant at the one percent level The marginal impact of Management capacities varies between 3% and 5%, indicating that a one-unit increase in Management capacities enhances the likelihood of a firm excelling in the Idea, Conversion, and Diffusion phases by 5%, 4%, and 3%, respectively.

Investment exceeding 10 billion VND significantly influences the Diffusion phase, increasing the likelihood of firms being strong in this phase by 22% when other variables are held constant Additionally, substantial investments correlate with a 14% higher probability of firms being classified in the strong group of the Conversion phase, with a statistical significance level of 5% These findings indicate that larger investments provide firms with a competitive edge in transforming their knowledge into tangible products and effectively distributing them in the market compared to smaller firms.

Companies with over 10 employees are significantly more likely to succeed in the final phase, demonstrating a 10% marginal effect at a 5% statistical significance level This indicates that micro businesses face greater challenges during the Diffusion phase, while larger enterprises benefit from enhanced capabilities in promoting and distributing their products in the market.

The two variables related to the business environment all show negative impacts on each phase of the IVC, but not all phases are statistically significant Relationship

CHAPTER 4 : RESULTS AND FINDINGS with local authorities is only significantly detrimental to the Idea sourcing phase (12% less likely to be in the strong group) This proves our theory that firms who think that having cordial relationship with local government is advantageous in assessing to important information and documents, are less likely to be interested in sourcing new ideas to solve business problems

Informal payments to local authorities are negatively correlated with a firm's capacity during the Conversion and Diffusion phases of innovation, while the Idea phase shows no significant impact Specifically, the Conversion phase has a strong negative coefficient of -0.50, with a marginal effect of -20% at a 1% significance level Similarly, the Diffusion phase exhibits a substantial marginal impact of -12% These findings indicate that firms required to make informal payments to authorities struggle more with executing innovative projects and disseminating their innovative outcomes.

Table 4.1.Estimation Results of Simple Probit Model and Marginal effects (ME)

Coeff ME Coeff ME Coeff ME

***, **: One and five percent statistically significant level respectively.

The relationship between firms’ characteristics and the overall IVC

The OLS model results indicate that the variable Age has a statistically significant negative coefficient of 0.01 at the 1% level This suggests that, on average, firms experience a decrease of 0.01 points for each additional year of age.

In the province, firms with 10 billion VND in revenue score 0.11 points higher on the IVC scale compared to other companies Additionally, firms employing more than 10 workers exhibit IVC scores that surpass those of micro firms by 0.06 points, with both findings being statistically significant at the 5% level.

Here is a rewritten paragraph that captures the essence of the original text, optimized for SEO:"Effective management is a key driver of innovation, as evidenced by the strong correlation between better-managed firms and higher Innovation Value Chain (IVC) scores In fact, a single-point increase in management capacity is associated with a 0.04-point boost in the IVC scoreboard, indicating that companies that adopt good management practices and tools tend to excel in innovation."

Recent findings indicate that two business environment variables maintain a statistically significant negative relationship with the Innovation Value Chain (IVC) Notably, the informal payment variable exhibits a stronger negative correlation of -0.14, highlighting its significant impact This reinforces prior research that underscores the harmful effects of bribery on innovation.

The relationship with local authorities has shown a loss of statistical significance in the OLS analysis, highlighting the importance of decomposing the Innovation Value Chain (IVC) into three distinct phases This decomposition reveals critical insights into how cronyism affects the idea generation phase, ultimately influencing firms' innovative capacity.

Table 4.2 Estimation Results of the OLS model

Investment >10 bil in 2018 in QN 0.11*** 0.04

***, **: One and five percent statistically significant level respectively

The IVC framework breaks down the innovation process into three distinct phases: Idea Generation, Conversion, and Diffusion, providing a linear model that simplifies the complex nature of innovation This framework helps to elucidate how different factors uniquely affect each phase Research indicates that firms investing over 10 billion in 2018 in the province excel in converting ideas and diffusing outputs compared to those with smaller investments, yet they do not have an advantage in sourcing new ideas Additionally, variables such as labor dynamics, cronyism, and bribery exhibit varying degrees of influence on the innovation process, which the IVC framework effectively highlights.

The IVC approach is valuable for both managers and policymakers, enabling them to predict how policies influence firms' innovation capabilities Research indicates that various policy instruments have differing effectiveness on innovation aspects; for instance, measures to combat bribery significantly enhance firms' ability to develop and disseminate new innovative projects, while addressing cronyism fosters a more equitable environment that encourages the pursuit of radical ideas Therefore, policymakers should consider these impacts on the IVC during the formulation and planning stages of policy development.

Effective management capabilities play a vital role in fostering innovation within firms Companies that implement strong management practices demonstrate more robust connections throughout their Innovation Value Chain (IVC) Notably, this is the only variable that shows a statistically significant correlation across all stages of the IVC This reinforces earlier studies highlighting the importance of good management for driving innovation in businesses (WB, 2016; 2020).

DISCUSSIONS AND POLICY IMPLICATION

Discussion

The IVC framework breaks down the innovation process into three distinct phases: Idea Generation, Conversion, and Diffusion, offering a linear perspective that transitions from generating novel ideas to developing profitable products This simplified model helps clarify how different factors uniquely impact each phase of innovation For instance, research indicates that firms investing over $10 billion in 2018 in the province excel in converting ideas and diffusing outputs compared to those with smaller investments, although they do not perform better in sourcing new ideas Additionally, factors such as labor dynamics, cronyism, and bribery exhibit varying effects on the innovation process, which the IVC framework effectively highlights.

The IVC approach is valuable for both managers and policymakers, as it enables them to predict how policies affect firms' innovation capacities Research indicates that various policy instruments can have differing effectiveness on innovation aspects; for instance, initiatives aimed at eliminating bribery significantly enhance firms' abilities to develop and disseminate innovative projects, while combating cronyism and ensuring a level playing field encourages firms to pursue more radical ideas Therefore, policymakers should consider these impacts on the IVC during the formulation and planning stages of policy development.

Effective management capabilities are essential for fostering innovation within companies Organizations that implement robust management practices tend to establish stronger connections throughout their Innovation Value Chain (IVC) Notably, this is the only variable that demonstrates a statistically significant correlation across all stages of the IVC, reinforcing earlier studies that highlight the importance of good management in driving innovation (WB, 2016; 2020).

CHAPTER 5 : DISCUSSIONS AND POLICY IMPLICATION

Innovation is a structured and systematic process rather than a spontaneous event, necessitating discipline that can be learned and practiced Successful innovation relies on active learning and the effective application of acquired knowledge, highlighting the importance of proficient management, particularly in knowledge management.

Investment in a firm's resources is crucial for boosting innovative capabilities Analysis indicates that companies investing over 10 billion VND are more effective at transforming new ideas into products and successfully commercializing their innovations This supports the core principle of endogenous growth theory, which emphasizes the role of investment in driving both innovation and economic growth, with enterprises as key contributors Our findings underscore the significance of investment in developing robust innovative capacity.

Firms with over 10 employees demonstrate stronger connections in their Innovation Value Chain (IVC), particularly during the Diffusion phase This indicates that micro-firms face challenges in effectively commercializing their innovative outputs compared to larger small and medium-sized enterprises (SMEs).

The business environment has significant impacts on firms’ innovative capacities

This research examines the impact of cronyism and bribery, revealing that cronyism significantly influences the idea generation phase, whereas bribery has a more pronounced effect in the subsequent phases of the process.

Firms that view their kinship with local authorities as an advantage in accessing crucial information tend to develop weaker connections, particularly during the idea sourcing phase This may be attributed to the fact that such relationships provide easier access to business opportunities, reducing the need for firms to engage in innovative projects to enhance their competitiveness Research supports this negative correlation between cronyism and innovation; for instance, Sabry (2019) discovered that while formal state-business consultations can foster innovation, cronyism generally hinders business innovation However, in countries with institutional deficiencies, cronyism may paradoxically promote innovation by mitigating the constitutional inefficiencies that typically obstruct it.

Quang Ninh stands out among Vietnamese provinces for its advanced and efficient administration, consistently recognized by the business community as having the most favorable business environment for four consecutive years, as evidenced by high rankings in indices like PCI, PAPI, and PAR The local government actively engages with businesses and investors through the Investment Promotion Agency (IPA), established in 2012 and chaired by the Provincial Chairman, which coordinates efforts to attract investment and offers specialized consulting and support services Despite these advancements, our analysis indicates that cronyism negatively impacts the innovation process of Quang Ninh's SMEs, as firms with ties to local authorities often feel less compelled to embrace risk-taking in innovation This detrimental effect outweighs any previously noted benefits of cronyism, particularly in light of ongoing improvements in formal consultation channels and the overall business environment.

Bribery has a notably negative impact on a firm's innovative capacity in Quang Ninh, particularly during the Conversion and Diffusion phases of the Innovation Value Chain (IVC) This indicates that bribery hinders the ability to transform new ideas into marketable products and to effectively distribute and protect these products While firms may resort to bribery to navigate bureaucratic challenges and administrative barriers that impede innovation, its overall effect is detrimental to their creative potential (Leff, 1964; Nguyen, 2020).

In recent years, advancements in administrative management have diminished the advantages of bribery for innovators Instead, bribery has turned into a liability for small and medium-sized enterprises (SMEs), diverting resources that could be allocated to innovative projects towards payments to local government officials.

The age of a firm is found to have a negative correlation with the Innovation Value Creation (IVC), contrary to our initial hypothesis Analysis indicates that this correlation is primarily observed during the Diffusion phase, albeit with a marginal effect and a low statistical significance of 10% Nonetheless, the OLS model reveals that firm age is a significant variable, highlighting its impact despite the small degree of influence Consequently, it can be concluded that the newer firms in Quang Ninh province exhibit stronger overall innovation capabilities compared to their older counterparts.

Limitation of the research

This research examines how the characteristics of small and medium-sized enterprises (SMEs) influence their innovative capacities Instead of focusing on the outcomes, such as the quantity of innovative products or processes, the study evaluates the innovation process through the perspectives of managers This method serves as a proxy for assessing a firm's true innovative capacity.

To enhance the model, it is essential to consider additional variables like the firm's investment in R&D, the proportion of skilled workers, and involvement in transnational trade, as these factors are commonly examined in innovation studies Despite the absence of data for these variables, our Omitted Variable Test within the OLS model indicates that there are no significant issues related to omitted variables.

Causal relationships and endogeneity issues can arise in innovation regression models, as discussed in previous studies by Nguyen (2020) and Roper & Arvanitis (2012) Nguyen emphasizes the importance of addressing these challenges to ensure the accuracy of research findings in this field.

In 2020, some literature indicated a potential reversal causality between firm performance, including innovation, and bribing behavior Due to the binary nature of the observatory variables, traditional instrumental variable approaches were ineffective, prompting the use of a bivariate probit model with a maximum likelihood estimator to achieve less biased estimates, as suggested by Wooldridge (2010) Roper & Arvanitis (2012) successfully addressed endogeneity in their study of innovation outputs and business performance by employing instrumental methods with continuous variables However, our research aims to explore the relationship between various characteristics of SMEs and the innovation value chain (IVC), leaving the endogeneity issue for future studies.

Policy Implication

The report emphasizes the need for a comprehensive approach by the local government to enhance the innovative capacity of local firms in Quang Ninh province It highlights the significance of both internal and external business environmental factors in fostering innovation The primary recommendation is for the local government to develop supportive policies that lower innovation costs and promote a transparent competitive landscape Additionally, it is crucial for the government to maintain its efforts in improving the quality of the business environment, a strategy it has successfully implemented in recent years.

Local governments should focus on supporting high-potential SMEs, as indicators such as firm performance and management capabilities can highlight their potential for growth The objective of these supportive policies is not merely to achieve a balanced economy, given the disadvantages SMEs face compared to larger enterprises, but to foster successful innovators that can scale and thrive in the future (Mazzucato, 2020).

Financial support should extend beyond limited measures such as preferential tax rates, encompassing broader and more purposeful initiatives This includes contracting projects and public procurement that demand significant innovative capacity, as well as creating platforms that link investors with local innovators.

To enhance support for SME innovation, local governments must improve their formal channels and innovate within their own policies By identifying their "weakest links," local governments can develop more effective solutions While successful practices from other countries can provide valuable insights, their successful implementation requires a deep understanding of the local context.

Ayyagari, M., Demirgỹỗ-Kunt, A., & Maksimovic, V (2014) Bribe Payments and Innovation in Developing Countries: Are Innovating Firms Disproportionately Affected? Journal of Financial and Quantitative Analysis, 49(1), 51-75 doi:10.1017/S002210901400026X

Bougrain, F., & Haudeville, B (2002) Innovation, collaboration and SMEs internal research capacities Research policy, 31(5), 735-747

Chen, X., Liu, Z., & Zhu, Q (2018) Performance evaluation of China's high-tech innovation process: Analysis based on the innovation value chain Technovation, 74,

In their 2020 study, Dinh et al highlight the importance of developing a set of criteria for the rapid assessment of innovative capacities in small and medium-sized enterprises (SMEs) in Vietnam, drawing on international experiences to inform their recommendations They emphasize that understanding and measuring innovation is crucial for the growth of SMEs, which play a vital role in the economy Additionally, Drucker (2014) underscores the connection between innovation and entrepreneurship, suggesting that fostering an innovative environment is essential for entrepreneurial success This research offers valuable insights for policymakers and business leaders aiming to enhance the innovative capabilities of SMEs in Vietnam.

Ganotakis, P., & Love, J H (2012) The innovation value chain in new technology‐ based firms: Evidence from the UK Journal of product innovation management, 29(5), 839-860

Hisrich, R D., & Kearney, C (2013) Managing innovation and entrepreneurship Sage Publications

Keizer, J A., Dijkstra, L., & Halman, J I (2002) Explaining innovative efforts of SMEs.: An exploratory survey among SMEs in the mechanical and electrical engineering sector in The Netherlands Technovation, 22(1), 1-13

Koopman, P A R (1984) Confidence intervals for the ratio of two binomial proportions Biometrics, 513-517

Krammer, S M (2019) Greasing the wheels of change: Bribery, institutions, and new product introductions in emerging markets Journal of Management, 45(5), 1889-

Leff, N H (1964) Economic development through bureaucratic corruption American behavioral scientist, 8(3), 8-14

In "The Entrepreneurial State: Debunking Public vs Private Sector Myths," Mariana Mazzucato (2020) challenges the conventional narrative that positions the public sector as a mere facilitator of private enterprise She argues that the state plays a crucial and active role in driving innovation and economic growth, often taking on risks that the private sector is unwilling to embrace Mazzucato emphasizes that successful technological advancements and breakthroughs frequently stem from public investment and support, thus reshaping the understanding of the relationship between government and industry This work calls for a reevaluation of the myths surrounding the roles of the public and private sectors in fostering entrepreneurship and innovation.

In their 2020 study, Nguyen, Hoang, and Dinh explore the crucial role of science, technology, and innovation in driving economic growth, providing both theoretical insights and empirical evidence The research highlights the implications of these factors for Vietnam's economic development, emphasizing the need for strategic investments in innovation to enhance competitiveness and foster sustainable growth.

39 của khoa học, công nghệ và đổi mới sáng tạo trong tăng trưởng kinh tế: Một số gợi suy cho Việt Nam) JSTPM, 9(4), 2020

Nguyen, T N (2020) The Effect of Bribery on Firm Innovation: An Analysis of Small and Medium Firms in Vietnam The Journal of Asian Finance, Economics, and

OECD (2021), SME and Entrepreneurship Policy in Viet Nam, https://www.oecd- ilibrary.org/industry-and-services/sme-and-entrepreneurship-policy-in-viet- nam_30c79519-en

Rogers, M (2004) Networks, firm size and innovation Small business economics, 22(2), 141-153

Roper, S., & Arvanitis, S (2012) From knowledge to added value: A comparative, panel-data analysis of the innovation value chain in Irish and Swiss manufacturing firms Research Policy, 41(6), 1093-1106

Roper, S., Du, J., & Love, J H (2008) Modelling the innovation value chain Research policy, 37(6-7), 961-977

Sabry, M I (2019) Fostering innovation under institutional deficiencies: formal state– business consultation or cronyism? Economia Politica, 36(1), 79-110

Schumpeter, J., 1934 The Theory of Economic Development Harvard University Press, Cambridge, MA

Wooldridge, J M (2010) Econometric Analysis of Cross Section and Panel Data

Cambridge, MA: The MIT Press

World Bank (2020), Vietnam: Science, Technology, and Innovation Report

World Bank (2016) Vietnam 2035: Toward prosperity, creativity, equity, and democracy

1 Nguyen, T L., Hoang, V T, & Dinh, T M (2020) The role of science, technology and innovation in economic growth: a theorerical and empirtical review and its implications for Vietnam (Tổng quan lý thuyết và kinh nghiệm thực tiễn về vai trò của khoa học, công nghệ và đổi mới sáng tạo trong tăng trưởng kinh tế: Một số gợi suy cho Việt Nam) JSTPM, 9(4), 2020

The set of questions assessing firm’s management capacities in the DDCI Quang Ninh

No Point The firm already had/does’t have/planned to adopt each of these management technigque

Khi doanh nghiệp gặp phải các vấn đề trong quá trình kinh doanh, họ cần rà soát và điều chỉnh quy trình làm việc nhằm ngăn ngừa việc tái diễn tình trạng tương tự.

When problems arised from the business process, the firm focuses on inspecting and adjusting the working process to prevent the same things happen again

2 1 Doanh nghiệp đã ban hành và thực thi đánh giá kết quả công việc của nhân viên qua bộ chỉ số hiệu quả công việc (KPI)

The firm has adopted and implemented the Key Performance Idicator to assess the performance of personnel

3 1 Doanh nghiệp đề bạt và thăng chức cho cán bộ, nhân viên dựa trên kết quả, hiệu quả công việc

The firm proposes and promots its personnel based on their performance

Doanh nghiệp cần thiết lập chính sách hiệu quả để thu thập, tổ chức và phân tích dữ liệu thị trường cùng với các thông tin đầu vào và đầu ra, như cơ sở dữ liệu khách hàng và nhà cung cấp.

The firm has policies to collect, organize, and analyze market data, input, output (i.e customers data, suppliers, ect.)

Định dạng
Số trang	50
Dung lượng	639,66 KB