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ICC Advance Access originally published online on March 24, 2007
Industrial and Corporate Change 2007 16(2):269-292; doi:10.1093/icc/dtm003
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© The Author 2007. Published by Oxford University Press on behalf of Associazione ICC. All rights reserved.

Learning, product innovation, and firm heterogeneity in developing countries; Evidence from Tanzania

Micheline Goedhuys

Correspondence: Micheline Goedhuys, UNU-MERIT, Keizer Karelplein 19, 6211 TC Maastricht, the Netherlands and Institute of Development Policy and Management, University of Antwerp, Venusstraat 35, Belgium. e-mail: micheline.goedhuys{at}skynet.be

Using firm data, this study investigates the various sources of firm learning, investment and linkages, and their importance for product innovation in Tanzania. The analysis reveals important differences in innovation strategies for foreign and local firms. Foreign innovative firms have stronger vertical linkages with other foreign firms and invest more in human and physical capital. Local firms offset these disadvantages through in-house R&D, connectivity, and collaboration with other local firms, proving to be more embedded in the local industrial structure.


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