Beyond technological catch-up: An empirical investigation of further innovative capability accumulation outcomes in latecomer firms with evidence from Brazil
Paulo N. Figueiredo
#2013-048
This article examines outcomes that are achieved by latecomer firms from
the accumulation of innovative capabilities. Drawing on fieldwork
evidence from pulp and paper firms in Brazil (1950-2010), it was found
that: (1) the firms accumulated innovative capabilities that turned them
into world leaders in the segment of the global pulp and paper industry
based on eucalyptus forestry; (2) besides this technological catch-up,
the accumulation of these innovative capabilities resulted in outcomes
that generated benefits within these firms such as (i) implemented
inventive and innovative activities; (ii) consistent improvement of
several parameters of operational and environment-related performance;
(iii) varied patterns of corporate growth; (3) these outcomes were
achieved not only by research-based and patent-related capabilities but
mainly by a mix of innovative capability levels, with differing degrees
of novelty and complexity for diverse technological functions.
Therefore, the accumulation of a wide range of types and levels of
innovative capabilities does pay off for the innovative firms, their
industries and, ultimately, their economies. By combining a novel
approach to examining firm capabilities with findings from an inductive
fieldwork, this article provides new empirical and methodological
insights for the long-standing debate on innovative capabilities as the
fundamental source of firm competitive performance. The article draws
managers' attention to the importance of a multiplicity of types and
levels of capabilities to achieve relevant outcomes, and policy makers
in developing economies to adopt a comprehensive view on innovative
activities and place firm-centred innovation capability accumulation at
the centre of industrial innovation policies.
Keywords: innovative capability accumulation; latecomer firms; catch-up;
competitive performance; Brazil.
JEL Classification: M16, O32, Q16, Q18
