Luận án: Lan tỏa tri thức, đổi mới ngành và TFP doanh nghiệp chế tạo Việt Nam

MINISTRY OF EDUCATION AND TRAINING UNIVERSITY OF ECONOMICS HO CHI MINH CITY ***** NGUYEN THI HOANG OANH KNOWLEDGE SPILLOVER, SECTORAL INNOVATION AND FIRM TOTAL FACTOR PRODUCTIVITY: THE CASE OF MANUFACTURING INDUSTRIES IN VIETNAM PhD THESIS HO CHI MINH CITY, 2021 MINISTRY OF EDUCATION AND TRAINING UNIVERSITY OF ECONOMICS HO CHI MINH CITY ***** NGUYEN THI HOANG OANH KNOWLEDGE SPILLOVER, SECTORAL INNOVATION AND FIRM TOTAL FACTOR PRODUCTIVITY: THE CASE OF MANUFACTURING INDUSTRIES IN VIETNAM Major: Development Economics Code: 9310105 PhD Thesis ACADEMIC ADVISORS 1. Pham Khanh Nam 2. Pham Hoang Van HO CHI MINH CITY, 2021 i COMMITMENTS I hereby declare that this dissertation is my own work and it has not been previously submitted for a degree elsewhere. All the references from works done by other authors have been explicitly cited.

To the best of my knowledge, I would like to certify that the above statements are true. Ho Chi Minh City, January 2021 Nguyen Thi Hoang Oanh ii ACKNOWLEDGEMENT First of all, I would like to express my deepest gratitude to my academic advisers Dr. Pham Khanh Nam and Dr. Pham Hoang Van for their valuable advices and continuous support during my study.

They have given me autonomy on doing my research while continuing to provide me valuable feedbacks and encouragement. Second, I would like to thank the School of Economics and University of Economics Ho Chi Minh City for providing me the best environment for my study and doing my research. I also would like to thank the board of professors and independent external reviewers on giving me a lot of useful comments on my research. All their comments enable me to improve and complete this version of my thesis.

Last but not least, I am extremely grateful to my family for their love, support and sacrifice. Without them, the completion of my dissertation would not have been possible. Ho Chi Minh City, January 2021 Nguyen Thi Hoang Oanh iii Table of Contents COMMITMENTS. vii LIST OF TABLES.

viii LIST OF FIGURES. The significance of the research’s topic. The importance of the research the role of knowledge spillovers on innovation at sector level 3 1. The importance of the research on heterogeneity of firms’ TFP in considering both firms’ characteristics and spillover effects from sectors and regions.

The importance of research on the role of knowledge spillovers on sectoral innovation and firms’ TFP in the manufacturing industries in Vietnam. The gaps and the new aspects in this thesis. The new aspects in theoretical framework. The new aspects of the methodology.

The new aspects of the context. RESEARCH OBJECTIVES AND QUESTIONS. RESEARCH METHODOLOGY and RESEARCH SCOPE. STRUCTURE OF THIS STUDY.

DEFINITION AND CONCEPTS. Knowledge production function and the determination of innovation in this study. Sectoral Innovation System (SIS) and its determinants. Total Factor Productivity (TFP).

Definition of Total Factor Productivity. TFP measurement and its issue. TFP measurement methods. Developing model on Knowledge Spillovers at sector-level.

Channels of knowledge spillovers and the research hypothesis of the first objective 33 2. Theoretical framework of knowledge spillovers to firms. Debates on knowledge spillover of intra- sector to firms. Human capital externalities from the province to firms.

Multilevel modeling on firms’ total factor productivity and the research hypothesis of the second objective. Empirical Studies on determinants of sectoral innovation. Empirical Studies on channels of knowledge spillover and applications of Spatial Regression Model. Empirical Studies on TFP.

THE RESEARCH MODEL ON SECTORAL INNOVATION. The spatial econometrics and test for model specification. Estimation Strategy of the Model. Measuring Direct and Indirect effects in the Model.

The research model of Cross-Classified Model. Measurement of Total Factor Productivity: Semi- parametric Approach. Data for measuring TFP. Application of Cross-Classified Multilevel Model on the study.

The Research Model of Cross-classified Model on Firm Productivity. SECTORAL INNOVATION AND SPILLOVER EFFECTS: RESULTS FROM SPATIAL REGRESSION MODELS AND DISCUSSIONS. OVERVIEW OF RESEARCH AND DEVELOPMENT (R&D) ACTIVITIES AND PATENTS IN VIETNAM. R&D expenditure and R&D intensity in Vietnam.

Funding sources and performance of R&D activities. The human resources in R&D activities. The overview of the registration and approval of patents in Vietnam. Overview of transfer channel of technology and innovation in Vietnamese manufacturing industries.

RESULTS OF THE MODEL ESTIMATION. DISCUSSION ON THE RESULTS. HETEROGENEITY IN TFP OF VIETNAMESE MANUFACTURING FIRMS: RESULTS FROM CROSS-CLASSIFIED MODELS AND DISCUSSIONS. THE MANUFACTURING INDUSTRIES AND FIRMS’ PRODUCTIVITY.

The importance of manufacturing industries in Vietnam. The value added and contribution of capital, labor and TFP to economic growth by economic activities in Vietnam. Overview of capital, labor and total factor productivity (TFP) in manufacturing sectors in Vietnam. Summary on characteristics of Vietnamese manufacturing enterprises in the research data 126 5.

THE RESULTS OF MODEL ESTIMATION. The Cross classified model with no predictors (Empty Model). The Fixed effect models. The multilevel models: fixed region and random sector.

The multilevel model: fixed sector and random province. The multilevel model with sector random effects and region random effects. The multilevel model with sector random effects and province random effects. SUMMARY ON RESULTS AND DISCUSSION.

CONCLUSION AND POLICY IMPLICATIONS. CONCLUSIONS ON IMPORTANT FINDINGS. SOME POLICY IMPLICATIONS. LIMITATIONS AND FUTHER RESEARCH.

Description of Sectors. The distribution of provinces by regions. Test on SDM versus SEM and SAR. Spatial Regression Model in analysis on Knowledge Spillover among Sectors.

General idea of Spatial Regression Model. Knowledge Spillover among Sectors under Spatial Regression Model approach. Robust Hausman Test. xxxii vii ABBREVIATIONS Words Meanings APO Asian Productivity Organization ASEAN Associate East Asia Nation CCMM Cross-Classified Multilevel Model CIEM Central Institute for Economic Management DERG Development Economics Research Group FDI Foreign Direct Investment FE Fixed Effects GDP Gross Domestic Product GERD Gross expenditure on R&D GSO General Statistics Office GTFP Green Total Factor Productivity IO Input Output LBE Learning by Exporting LP Levinsohn and Petrin NIS National Innovation System NISTPASS National Institute for S&T Policy and Strategy Studies OECD Organization for Economic Co-operation and Development OP Olley-Pakes Ph.

Philosophy Doctor QML Quasi-Maximum Likelihood R&D Research and Development RE Random Effects RIS Regional Innovation System S&T Science and Technology SAC Spatial Autoregressive Model with Auto Regressive SAR Spatial Autoregressive Model SDM Spatial Durbin Model SEM Spatial Error Model SIC Standard Industrial Classification SIS Sectoral Innovation System SME Small and Medium Enterprise TCS Technology and Competitiveness Survey TFP Total Factor Productivity VAT Value Added Tax VES Vietnam Enterprise Survey VPC Variance Partitioning Coefficient VSIC Vietnam Standard Industrial Classification viii LIST OF TABLES Table 3. Description of variables in the models. Description of variables in the model of the second objective. Gross expenditure on R&D (GERD) and intensity of GERD.

Investment on Science &Technology and Research & Development in 2013. Registration for patents by nationality of applicants. Number of approved patents by nationality of the holders. Descriptive Statistics of variables in the model of the first objective.

Correlation matrix of variables in the model. Estimation results of the model by fixed and random effects. Estimation results of the model by Spatial Regression with fixed year effects 106 Table 4. Estimation results of the model by Spatial Regression with random sector effects.

Estimation results of the model by Spatial Regression with fixed year effects. Estimation results of the model by Spatial Regression with random sector effects. The number of sectors per province. The number of provinces that firms in a sector has located.

The descriptive statistics of variables in the model. The correlation matrix between variables in the model. The descriptive statistics of the logarithm of TFP in the data sample. The result of Cross classified model with no predictors.

The result of firm fixed effect model. The result of region Fixed effect and sector Random effect model. The result of sector Fixed effect and province Random effect model. The results of sector Random effect and region Random effect model.

The results of sector Random effect and province Random effect model. 143 x LIST OF FIGURES Figure 2. The framework of knowledge production function. The equilibrium between wage and rent in two types of city.

Theoretical framework of the study. Example on 12 firms at Level 1 nested within an Industry and Province Cross- Classified Multilevel Model at Level 2. Comparison on GERD of some countries. Average expenditure on R&D per researcher (FTE) (USD PPP).

GERD and R&D investment from enterprises in 2013. GERD of nations by funding sources. GERD by implementing parties in 2011. GERD by implementing parties in some ASEAN countries.

The average number of researchers per ten thousand people in 2013. The R&D human resources by economic types in 2014. The R&D human resources by implementing parties in 2014. The qualification of researchers by economic types.

The qualification of researchers by types of organizations. The percentage of registration for patents to be approved. Main Supplier of Technology. The technology transfer from Customers.

The main export markets of Vietnamese firms. Sources of Imported Inputs of Vietnamese firms. Originality of Research Output. Share of firms doing research and adaptation.

Percentage of number of firms had R&D activities by sectors. Percentage of number of firms had innovation activities by sectors. Percentage of number of firms had modification activities by sectors. The decomposition of GDP in Vietnam from 2010 to 2016.

Labor participation by economic sector from 2010 to 2016. The Average output growth by Industry, 2000-2014. The contribution share to output growth by industry, 2000-2014. Labor productivity growth by Industry in the period 2000-2014.

Growth rate in value added and labor productivity by economic sectors. Contribution to economic growth by Capital, Labor and TFP. Growth rate in Labor Productivity with Capital, Labor and TFP by economic sectors. Labor Productivity in 2015 and average labor productivity (2011-2015).

Growth rate in capital per worker and TFP (2011-2015). Contribution of Capital, Labor and TFP to growth of value added (2011-2015). 125 1 KNOWLEDGE SPILLOVER, SECTORAL INNOVATION AND FIRM TOTAL FACTOR PRODUCTIVITY: THE CASE OF MANUFACTURING INDUSTRIES IN VIETNAM Abstract This study developed the framework of knowledge spillovers at sector level and investigated these spillover effects of research and development (R&D), foreign direct investment (FDI) and trade activities on sectoral innovation by Spatial Regression Models. Besides, the study examined the spillover effects of sectoral innovation and provincial human resources on firms’ TFP with 7,236 enterprises in 38 sectors of Vietnamese manufacturing industries, located in 62 provinces by Cross-Classified Models.

By Spatial Regression Models with 38 manufacturing sectors in correspondence to Input/Output table from 2010 to 2014, the intra-industry rather than inter-industry spillover effects was found to be significant; that approved the hypothesis of Marshall rather than Jacobs externalities. In particular, only R&D and export activities were found to have significantly positive effects on innovation activities at the sector level. In contrast, FDI and import activities seem to have negative impact on innovation activities. In cross-classified models, firms’ characteristics in comparison with characteristics of sectors and provinces may have the highest explanation on the heterogeneity in firms’ TFP.

The firm size, capital intensive and export orientation were found to have stably significantly positive impacts on firms’ TFP. The sectoral innovation might turn to have positive impacts on the productivity of firms in that sector after one year. Besides, the externalities of human resources in provinces on firms’ productivity were found to be positive.