Local vs non-local sources of knowledge for the low-tech firms’ product innovation: evidence from the food-processing industry in Thailand

This study aims to examine the effect on firms’ new product development (NPD) and significant product modification of knowledge interaction with local and non-local knowledge actors.

This study draws insights from the literature on external knowledge sources. The negative binomial regression is used to analyse the data of 245 sample food-processing establishments in Thailand.

Local knowledge actors play only limited roles in enhancing food-processing establishments’ product innovations. Only knowledge interaction with local universities and public research organisations helps enhance establishments’ ability to modify their products. For the NPD, significant sources of knowledge are non-local industrial actors.

This study adds new empirical evidence on knowledge sources for innovation of low-tech firms in less developed countries. It contributes new findings to an on-going debate on the importance of local vs non-local knowledge sources on firms’ innovativeness. It also contributes some implications for the Thai Government’s cluster-based innovation strategy.