Firm-Level Upgrading in Developing Countries

57 Pages Posted: 16 Dec 2024

See all articles by Eric A. Verhoogen

Eric A. Verhoogen

Columbia University - School of International & Public Affairs (SIPA); IZA Institute of Labor Economics; Centre for Economic Policy Research (CEPR)

Multiple version iconThere are 3 versions of this paper

Abstract

In principle, firms in developing countries benefit from the fact that advanced technologies and products have already been developed in industrialized countries and can simply be adopted, a process often referred to as industrial upgrading. But for many firms this advantage remains elusive. What is getting in the way? This paper reviews recent firm-level empirical research on the determinants of upgrading in developing countries. The first part focuses on how to define and measure various dimensions of upgrading - learning, quality upgrading, technology adoption, and product innovation. The second part takes stock of recent micro-empirical evidence on the drivers of upgrading, classifying them as output-side drivers, input-side drivers, or drivers of know-how. The review concludes with some thoughts about promising directions for research in the area.

Keywords: developing countries, upgrading, firms

JEL Classification: O1, L2, F1

Suggested Citation

Verhoogen, Eric A., Firm-Level Upgrading in Developing Countries. IZA Discussion Paper No. 14858, Available at SSRN: https://ssrn.com/abstract=5053884 or http://dx.doi.org/10.2139/ssrn.5053884

Eric A. Verhoogen (Contact Author)

Columbia University - School of International & Public Affairs (SIPA) ( email )

420 West 118th Street
New York, NY 10027
United States

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

Centre for Economic Policy Research (CEPR) ( email )

London
United Kingdom

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
4
Abstract Views
48
PlumX Metrics