Determinants of persistence in innovation of electronics enterprise in Ho Chi Minh cityc

Abstract

This study analyzes the factors affecting the persistence in innovation of enterprises in electronics industry in Ho Chi Minh City using DPM (Dynamic Probit Model) with MLE (Maximum Likelihood Estimation) and CML (Conditional Maximum Likelihood) estimation method. Data are collected from annual enterprise surveys in the period between 2007 and 2013 by GSO. The results show that firm size and foreign ownership affect the persistent innovation of the electronic enterprises in Ho Chi Minh City. This indicates that enterprises in the electronic industry in the upcoming time need to strengthen and enhance size, attract foreign investment to facilitate this innovation performance for the stable and sustainable development.