Entrepreneurial Human Capital, Innovation and Productivity in Small and Medium Manufacturing Enterprises in Vietnam
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This chapter examines the impact of entrepreneurial human capital (education) on product and process innovation and productivity (total factor productivity) in Vietnam’s SMEs. The analysis applies primary data obtained from a questionnaire survey of manufacturing SMEs in Hanoi in 2014 on a probit model and interview surveys in various industrial cities. The samples used for the analysis include 440 observations and covers 17 subsectors of the manufacturing industry. The analysis reveals that (1) entrepreneur’s education at the college or higher level stimulates innovation, while backward technology applied in the firm appears to be hindrance to innovation; (2) firm experience, represented by the age of a firm, is associated with higher innovation probability, yet it does not significantly enhance firm productivity; and (3) ownership types of firm and industrial sectors reveal mixed results in terms of innovation and successful entrepreneurship. The findings confirm the importance of human capital in promoting innovation and fostering productivity enhancement at the firm level, and pertain to the human resource development and entrepreneurial human capital in enterprise development.
KeywordsEntrepreneurial human capital Innovation Total factor productivity SMEs Vietnam
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