Abstract:
A key question before Vietnamese policy makers is how to improve the competitiveness of SMEs. Innovation is among the many initiatives proposed to address this.
The initiative is based on the assumption that innovation can impact a firm’s competitiveness and its status in exports by increasing productivity, reducing costs, and by developing new goods for the international market.
Based on quantitative data analysis and qualitative case-studies, the paper stresses the importance of innovation for raising export competitiveness of Vietnamese firms in their exports, and provides several policy recommendations.